Ford and Geely create 66-34 joint venture at Almussafes, five models due in 2028

A new joint venture for Almussafes

Ford and Chinese automaker Geely announced on July 23 the creation of a joint venture that will take over the Almussafes plant in Valencia, Spain. The new company, 66% owned by Ford and 34% by Geely, will begin operations in the first half of 2027, subject to regulatory approvals. The entire factory, including its workforce of around 4,200 employees, will transfer to the JV. Ford Europe president Jim Baumbick stressed that the deal is not a sale of assets but an investment in manufacturing capacity, designed to maximize the plant's 500,000-unit annual potential. The factory, which opened in 1976, currently produces only the Ford Kuga at a rate of less than 100,000 vehicles per year.

The combination of Ford and Geely secures the next generation of our production plant in Valencia.

Five vehicles from 2028

Starting in 2028, the joint venture will assemble five models for the European market. The Kuga will continue without interruption, while a new Bronco SUV, already confirmed in May, will enter production. A third Ford model, a multi-energy crossover developed jointly with Geely, will also roll off the line that year. Geely will contribute two fully electric SUVs, its first vehicles built under the JV. The first of these is expected to reach dealerships in 2029. The partners aim to lift output from the current sub-100,000 level to the plant's full capacity of 500,000 units.

Workforce and local supply chain

The plant's headcount has fallen from over 8,000 at its peak to about 4,200 today, following four temporary layoff procedures between 2020 and 2024 and a government-backed furlough scheme (Mecanismo RED) that expires on December 31, 2026. All existing employees will move to the new company under unchanged conditions, and both executives said additional hiring will be necessary. Geely's executive vice president Victor Young committed to using only local labor and suppliers.

We will not bring labor from China. We are committed to using local capabilities.

Political backing and regional relief

The announcement was attended by Spanish Prime Minister Pedro Sánchez, Second Vice President Yolanda Díaz, Industry Minister Jordi Hereu, Science Minister Diana Morant, Valencian regional president Juanfran Pérez Llorca, and government delegate Pilar Bernabé. The plant has been a recurring concern for the government, which extended ERTE and RED mechanisms to preserve jobs during the transition to new models. Almussafes mayor Toni González welcomed the deal as a turning point after years of uncertainty.

Everything that contributes to increasing the workload of Ford Almussafes and guaranteeing its continuity is great news for our municipality, for our workers and for the entire auxiliary industry that depends on the factory.

Next steps and European strategy

The joint venture, whose name has not been disclosed, must still obtain regulatory clearances before it can launch in mid-2027. Ford plans to bring five new passenger vehicles to European showrooms by 2029, with Valencia playing a central role. The agreement also accelerates Geely's European expansion, with the Chinese firm aiming to manufacture half of the vehicles it sells in Europe within the continent. Baumbick said the plant's cost structure was a decisive factor, and that sharing production lines would drive down per-unit costs.