Geely and Ford Form Joint Venture to Produce Multi-Energy Cars at Idle Spanish Plant
Quick Look
- Geely and Ford have established a joint venture to assemble multi-energy and electric vehicles at Ford's idle Almussafes factory in Valencia, Spain, with deliveries expected to start in 2028.
- Geely will hold 34% and Ford 66% of the venture, aiming to optimize factory utilization and secure employment.
AI-generated summary
Why It Matters
The partnership addresses the underutilization of Ford's Almussafes plant, which was running at less than a quarter of its 450,000 vehicle annual capacity. This collaboration highlights a trend of Chinese carmakers expanding into Europe by utilizing existing international production facilities.
Multi-energy cars would be assembled at an idle factory in Almussafes, near Valencia, after the two companies set up a venture, with deliveries expected to begin in 2028, according to a statement by Geely on Thursday.
The Chinese group would hold a 34 per cent stake, while Ford would control 66 per cent, it added. Three Ford-branded multi-energy vehicles and two electric Geely-branded models would be assembled at the plant.
“By optimising factory utilisation and sharing development costs, the partnership will bolster operational excellence and provide long-term stability and employment opportunities for Valencia’s world-class automotive workforce,” Geely said in the statement.
The tie-up highlights a growing trend of Chinese carmakers deepening their European foray by tapping international marques’ excess production facilities.
The plant in Spain, once Ford’s largest factory outside the US, had been running at less than a quarter of its annual capacity of 450,000 vehicles, according to Bloomberg.
What to Watch
AI outlook — possibilities, not facts
Deliveries of multi-energy and electric vehicles from the Almussafes plant will begin in 2028.
Very likely · Within years
Open Questions
- What specific models will be produced?
- What is the exact investment amount?
- How many jobs will be created or secured?
