Ford and Geely have signed a strategic alliance that will transform Ford's Almussafes plant in Valencia into a major European center for building electrified vehicles. The deal secures the jobs of more than 4,200 workers at the site.
Under the agreement, the two companies will form a joint venture for Europe in which Ford holds 66% of the capital and Geely holds 34%. The new company will use the industrial capacity of the Almussafes factory, beginning operations in 2027, with production of the first vehicles set to start in 2028.
The move follows four trips by Spanish Prime Minister Pedro Sanchez to China on separate institutional missions aimed at strengthening economic ties between the two countries, encouraging new investment and opening opportunities for Spain's automotive industry.
Spain as an industrial bridge between the US and China
The alliance's significance extends beyond the Valencia region. Amid technological and trade rivalry between the United States and China, Spain is positioning itself as a space for industrial cooperation between the two economic powers.
Ford brings its established industrial track record in the European market. Geely, which owns brands including Volvo, Polestar and Lotus, is seeking to strengthen its presence in Europe by manufacturing vehicles on the continent itself. For the Chinese group, producing on European soil also offers a strategic advantage, easing access to the EU market and reducing the impact of international trade tensions.
Almussafes was chosen partly for its capacity, as it is considered one of Ford's most advanced plants in Europe. Its production lines can reach close to half a million vehicles a year, a volume the new alliance aims to recover progressively in coming years.
Beyond securing direct employment at the factory, the project is expected to benefit the wider auxiliary industry, including parts manufacturers, logistics firms and technology companies linked to the automotive sector, both in the Valencia region and across the rest of Spain.
Five models to be built at Almussafes
The industrial plan calls for the Valencia plant to produce five models in total. Ford will continue assembling the Kuga and will add a new SUV from the Bronco family for the European market. The two companies will also jointly develop a new multi-energy crossover.
Geely, for its part, will build two fully electric SUVs at Almussafes for the European market, a move that accelerates the plant's shift toward low- and zero-emission vehicle production.
Through the strategy, the two companies aim to turn the Valencia factory into a facility capable of competing with leading international plants on cost, productivity and efficiency, at a time when electrification is reshaping the automotive industry. The investment and the new industrial model also reinforce Spain's position as one of Europe's major centers of vehicle production.
