In the coming months, the fate of Valencia’s automotive industry may undergo a dramatic shift. The Ford plant in Almussafes has drawn the attention of several major Chinese auto corporations. Amid declining production and uncertainty over new models, the American giant is being forced to seek unconventional solutions to preserve jobs and keep its facilities running. Chinese brands, in turn, see this as an opportunity to cement their presence in the European market while bypassing strict tariff barriers.
A scenario that until recently seemed unlikely is now being discussed at the highest level. Ford is negotiating with Geely and Changan—two of China’s leading industry players who have long been searching for a production base in Spain. If successful, the Almussafes plant could become the country’s first facility to assemble cars from multiple global brands under one roof.
Negotiations and interests
Geely, which owns well-known brands like Volvo and Polestar, has repeatedly declared its European ambitions. The company is now close to reaching an agreement with Ford on joint use of production capacity in Valencia. For the Americans, this is a chance to partially offset declining output, while for the Chinese, it offers a real opportunity to bypass European tariffs and accelerate their entry into the market.
Changan, the second contender, is also no stranger to working with Ford. Their joint venture in China has been operating successfully for over two decades, producing popular models for the local market. Now, Changan is considering three scenarios: assembling its own vehicles at the Ford plant, building a separate factory, or acquiring a European brand with existing infrastructure.
Challenges and risks
However, reaching an agreement is not as straightforward as it might seem. Despite mutual interest, the parties are not yet ready to share technologies and know-how. The discussion is limited to joint use of production lines, without integrating engineering solutions. This approach helps reduce risks but still leaves the long-term strategy in question.
Meanwhile, local authorities in Valencia are actively preparing infrastructure for potential new investors. Six hundred thousand square meters of land have already been allocated next to the Ford plant, where a new manufacturing facility for Chinese companies may be established. The site is expected to be fully ready by May, which will significantly speed up the decision-making process.
Competition and prospects
MG, a brand with British roots now under Chinese ownership, has also expressed interest in the project. However, according to available information, Ford is in no hurry to open the doors to this player, choosing instead to focus on negotiations with Geely and Changan. The reason is simple: the Americans are looking for partners who can not only utilize capacity but also won’t become direct competitors in key markets.
For Chinese manufacturers, localizing in Spain means more than just saving on tariffs — it’s also a chance to respond more quickly to the needs of European consumers. As the electric vehicle market transforms rapidly, flexibility and speed become decisive factors for success. If the project moves forward, Geely and Changan cars will be able to enter the market without extra costs, making them even more appealing in terms of pricing.
The factory’s future
Currently, Ford’s plant in Almussafes is operating at minimum capacity, producing only one model — the Ford Kuga. Hopes are pinned on the launch of a new hybrid crossover in 2027, but until then, the plant is in need of new orders. Negotiations with Chinese companies could prove a lifeline for hundreds of employees and the entire regional supplier chain.
At the same time, the municipality and regional authorities are doing everything possible to attract investors from Asia. Their main priority is to create the conditions for rapid integration of new manufacturing and to preserve Valencia’s status as one of Europe’s automotive hubs. A decision on the plant’s future could be made in the coming months, and it will determine not only Ford’s prospects but also the future of the entire sector in Spain.
Geely is one of China’s largest private automotive groups, founded in 1986. The company is actively investing in the development of electric vehicles and owns well-known brands such as Volvo, Polestar, and Lotus. In recent years, Geely has been expanding its presence in Europe by opening research centers and forging strategic partnerships with leading global manufacturers. If the deal with Ford goes through, the group will be able to significantly strengthen its position in the European market and accelerate the introduction of new technologies into mass production.
