Geely has acquired a 34% stake in a new joint venture with Ford for the Almussafes plant. The deal values the company at €650 million. The partnership will impact production and jobs in Valencia.
Geely Holding has finalized a €221 million investment to secure a 34% share in a new joint venture with Ford, which will take over management of the Almussafes automotive plant in Valencia. The transaction, disclosed to the Hong Kong stock exchange, sets the total valuation of the new company at €650 million. Ford will retain the remaining 66% stake, maintaining a controlling interest in the operation.
The agreement, announced in Almussafes with the presence of Spanish Prime Minister Pedro Sánchez, marks a significant shift for one of Spain’s largest industrial sites. The new entity is scheduled to assume full control of the factory in 2027, integrating all 4,142 current employees into its structure. According to Geely, the partnership aims to leverage Almussafes’ manufacturing capacity for both brands, enhance operational efficiency, and strengthen their position in the European automotive market.
Production plans include five models to be built at the Valencia facility. Three of these will be new additions, joining the existing Ford Kuga and the upcoming Bronco, with the new models expected to roll out by the end of 2028. The lineup will feature two SUVs from Geely and a new multi-energy crossover from Ford, alongside the established models. Both companies emphasize that the collaboration is designed to maximize the use of Almussafes’ resources and improve competitiveness amid ongoing changes in the automotive sector. While an increase in workforce is anticipated, specific hiring numbers have not yet been detailed.
The joint venture has received positive feedback from unions and business organizations, who highlight the deal’s role in providing stability and securing future workloads for the plant. The move is seen as a strategic response to industry pressures and evolving market demands. Notably, the Almussafes plant has long been a cornerstone of Spain’s automotive industry, and this partnership is expected to reinforce its relevance in the coming years.
In the broader context of international business activity in Spain, regulatory scrutiny and cross-border investments have become increasingly prominent. For example, 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. Such developments underscore the growing complexity of global partnerships and the importance of compliance in major industrial agreements.
Spain remains one of Europe’s leading car producers, with the automotive sector accounting for a significant share of national exports and employment. The Almussafes plant, operational since the 1970s, has played a key role in this landscape. The new joint venture between Geely and Ford is expected to help the facility adapt to shifting industry trends, including the transition to electric and multi-energy vehicles. As the partnership moves forward, attention will focus on how the integration of new models and potential workforce expansion will shape the future of automotive manufacturing in Valencia and beyond.
