Geely Holding has finalized a €221 million investment for a 34% stake in a new joint venture with Ford. The venture will take over management of the Almussafes automotive plant in Valencia. Disclosed to the Hong Kong stock exchange, the transaction values the new company at €650 million. Ford will retain the remaining 66% stake and control of the operation. The agreement was formalized on 23 July 2026. Geely’s acquisition required approval from Chinese authorities, which was granted in September and made public on 12 October.
The agreement was announced in Almussafes in the presence of Spanish Prime Minister Pedro Sánchez. The new entity is expected to begin operations in the first half of 2027, bringing the existing factory and workforce into its structure. The venture is expected to be led by Jeff Jones, Ford’s former global director for Digital Technology Procurement and Electrified Systems. Geely says the partnership will use Almussafes’ manufacturing capacity for both brands and improve operational efficiency as the companies seek to strengthen their position in the European automotive market.
Production plans call for five models at the Valencia facility from 2028. The lineup will include the Ford Kuga and a model from the Bronco family. It will also feature two Geely SUVs and a new Ford multi-energy crossover. Geely’s models are intended for the European market. Both companies say the collaboration will make better use of Almussafes’ existing resources and improve competitiveness amid changes in the automotive sector. The workforce is expected to grow, but specific hiring numbers have not been detailed.
The joint venture has received positive feedback from unions and business organizations, which say the deal will provide stability and secure future workloads for the plant. The move is seen as a strategic response to industry pressures and changing market demands. The Almussafes plant marked its 50th anniversary in 2026 and is being repositioned to produce vehicles for Ford and Geely, rather than a single brand.
The partnership also includes a renewed battery-assembly project at Almussafes. Ford abandoned the project in 2024 along with €37 million in PERTE-related support, then revived the initiative in connection with the alliance. Ford is expected to clarify staffing for the battery operation in the second quarter of 2027, adding another key stage before the planned vehicle rollout.
Regulatory scrutiny and cross-border investment have become more prominent in Spain’s international business field. The European Commission recently imposed a record €550 million fine on AliExpress for failing to prevent illegal sales, as detailed in this report on digital platform penalties. The case highlights the compliance challenges that can accompany major international business agreements.
Spain remains one of Europe’s leading car producers, and the automotive sector accounts for a impressive share of national exports and employment. Operating since the 1970s, the Almussafes plant has played a basic role in the industry. The Ford and Geely joint venture is expected to help the facility adapt to shifting trends, including the move toward electric and multi-energy vehicles. The planned models and potential workforce expansion will shape the plant’s role in automotive manufacturing across Valencia and beyond.
