Ford owns 66% and Geely 33% of the new company, which will begin production at the Almussafes plant in 2028.
The plant will produce five models, including the Geely EX5 electric SUV, a second Geely vehicle in development, and the existing Ford Kuga and Bronco.
The agreement guarantees more than 15,000 indirect jobs and supports over 100 supplier companies employing 23,000 workers.
The deal gives Geely a manufacturing base inside the EU, helping it avoid tariffs and comply with upcoming local-content rules.
Prime Minister Pedro Sánchez and regional president Juanfran Pérez Llorca attended the announcement, citing tax incentives and administrative simplification as key factors.
Ford and Geely announced a joint venture on 23 July 2026, with Ford holding 66% and Geely 33%. The partnership will produce five vehicles at Ford's Almussafes plant near Valencia starting in 2028. Ford Europe President Jim Baumbick said the goal is to "really load up the facility." Geely Senior Vice President Victor Yang confirmed the first model will be the EX5 electric SUV, already sold in Europe, with a second Geely vehicle still in development. The two companies will also jointly develop a new model for the European market. The deal follows months of talks first reported by Reuters in February 2026, aided by a relationship dating back to Geely's purchase of Volvo Cars from Ford in 2010.
The Almussafes plant had seen its output shrink from five models to just one, the Kuga, with fewer than 100,000 units produced last year. The new agreement aims to restore the factory to its maximum capacity of 500,000 vehicles per year. The auxiliary industry in Valencia, comprising over 100 companies and 23,000 workers, welcomed the news. Francisco Segura, president of the AVIA automotive cluster, said the volume of manufacturing implied by the new SUV models, alongside continued production of the Kuga and Bronco, "allows suppliers to look to the future with greater confidence." Regional president Juanfran Pérez Llorca said the deal guarantees more than 15,000 indirect jobs at supplier companies.
“I know that uncertainty has caused anguish. With this agreement, the future is guaranteed and an end is put to that somewhat convulsive stage that generated nervousness for all of us.”
The joint venture gives Geely its first production facility in Europe, helping it avoid EU tariffs on electric vehicles imported from China and comply with upcoming "Made in Europe" local-content requirements. Chinese automakers are racing to secure factory space on the continent; Spain is a popular choice due to its position as Europe's second-largest car manufacturer after Germany and its lower labour and energy costs. BYD has shortlisted Spain, while Leapmotor will build an electric SUV at a Stellantis plant in Zaragoza. Victor Yang said Geely is not in Spain just to sell but "to invest in the local value chain and work with all current partners to meet market requirements."
Spanish Prime Minister Pedro Sánchez attended the announcement at the Almussafes plant, calling the deal proof of "the capacity of Spain to attract large investments and to participate in the great transformations that are defining the future of mobility." Valencian president Pérez Llorca highlighted the collaboration between regional and national governments and the private sector, citing tax reductions, fiscal incentives, and administrative simplification as factors that made the region attractive.
“When we all row in the same direction, future and hope are generated.”
The event was also attended by several Spanish ministers, including Labour Minister Yolanda Díaz and Industry Minister Jordi Hereu.
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The joint venture, 66% owned by Ford, will begin producing Geely's EX5 electric SUV and four other models at the Almussafes plant in 2028, securing over 15,000 indirect jobs.
AI text based on reports by La Razón, europa press, EL MUNDO and other publishers. Changed .