Ford’s Almussafes plant in Valencia, a pillar of Spain’s automotive industry, is entering a new industrial phase after years of uncertainty. Ford and China’s Geely formalized their partnership on 23 July 2026, establishing a joint venture to manufacture vehicles at the site. The program includes Geely SUVs, among them the EX2, and aims to give the factory’s workforce a more secure future while creating a European production base for both automakers.
Ford will own 66% of the venture and Geely 34%, with Geely paying approximately €221 million for its stake. The joint venture is expected to begin operating in the first half of 2027, subject to required authorizations, with vehicle production planned for 2028. The future line-up is expected to include the Ford Kuga and a Ford Bronco model, along with another Ford crossover and two Geely SUVs. This expanded allocation would make Almussafes a shared manufacturing hub, less dependent on a single model.
Securing Jobs After Years of Cuts
The plant has lost four major Ford models in recent years: Mondeo, S-MAX, Galaxy and Transit. The Kuga is now its principal vehicle. Almussafes is approaching its 50th anniversary after a prolonged period of production stoppages and employment-regulation procedures. The workforce is reported at 4,296 employees, who are expected to remain with the facilities as part of the joint venture. The planned expansion aims to increase factory utilization and support a return to more regular employment levels.
Plant output was approximately 90,000 vehicles in 2025, while the facility’s potential annual capacity under the expanded program is estimated at about 400,000. Ford’s future allocation includes a Bronco model and additional vehicles alongside the Kuga, while the Geely agreement adds two SUVs. Almussafes also has a separate battery-assembly project planned. Ford is expected to clarify staffing for that operation during the second quarter of 2027. The battery project has been linked to a reported €37 million in public support through a PERTE program.
Geely’s Strategic Move into Europe
Manufacturing in Valencia gives Geely a European production location and expands its presence in Spain beyond vehicle imports. The arrangement also gives Ford a way to increase activity at Almussafes and make use of its existing industrial facilities and workforce. Producing vehicles within the European Union may help Geely manage the impact of trade barriers affecting imports of Chinese-made cars. The partnership also connects the company to Spain’s automotive supply chain.
The joint venture covers more than a single Geely vehicle: the planned plant line-up combines Ford models with two Geely SUVs from 2028. Geely’s EX2 is identified as one vehicle in the supplied production plan, while published descriptions of the broader program also include a second Geely SUV. The arrangement marks a impressive European manufacturing step for the Chinese automaker and could reset industrial activity at Almussafes.
Industry Impact and Broader Context
The Ford-Geely alliance is a major industrial development for Valencia, where Almussafes supports a network of automotive suppliers and related businesses. Regional coverage has described the partnership as opening a new phase for the factory and its surrounding industry. It reflects shifting dynamics in the global car sector, where established manufacturers and newer competitors are joining forces to expand production and respond to technological and economic pressures. The deal echoes a wider pattern of innovation and adaptation, seen also at manufacturers such as Santana Motors, which recently relaunched its iconic Cajal 4x4 in Linares with a modern, tech-forward approach (see how Spanish brands are reinventing themselves).
For Valencia and Spain, the agreement reinforces the country’s role in European automotive manufacturing. Its full impact depends on implementation of the joint venture and the required authorizations, with production planned to start in 2028. If the model program proceeds as planned, Almussafes will move from relying principally on the Kuga to producing a wider mix of Ford and Geely vehicles. That could substantially increase output and sustain employment at the site.
