Chinese car manufacturer Geely Automobile Holdings has reached an agreement with its US counterpart, Ford Motor Company, to transform and make use of Ford’s production plant in Almusafes, Valencia, one of the largest in Europe, and with an annual capacity of nearly half a million vehicles. Both companies will establish a manufacturing joint venture to produce vehicles for their respective brands in European markets.

The Almusafes plant, one of Europe’s most advanced, will receive significant investment to transform it into a shared high-tech manufacturing hub. Through this process, the use of the facilities will be optimised and both companies will share development costs. Operational excellence will as a result be enhanced, the plant’s long-term stability will be secured and new jobs will be created in high-tech manufacturing.

Three multi-energy models, two electric models
Ford will own 66% of the new joint venture and Geely Auto the remaining 34%. Operations will begin in the first half of 2027, once regulatory approvals have been secured, and with the aim of starting production of three Ford multi-energy models and two Geely electric vehicles from 2028.

A new generation of low- and zero-emission vehicles will roll off the production lines at Almusafes. The two Geely models will accelerate the international expansion of one of the world’s fastest-growing Chinese car brands. In the first half of 2026 alone, its overseas sales rose by 158% to 474,228 units.

Strategic cooperation
Geely bought Volvo Cars from Ford in 2010, and following the success of the deal and the revitalisation of the Swedish brand, a relationship of trust has developed since then, culminating in this agreement.

Alex Nan, Vice-President of Geely Auto Group, said, “This strategic cooperation with Ford is an important step towards open and mutually beneficial collaboration for both parties. It marks a milestone in Geely Auto’s global development and will further strengthen its presence in Europe.”

Ford Europe President Jim Baumbick recalls a history spanning almost 50 years, during which “Valencia has built some of the most beloved cars in our history”, and he is confident that the new agreement “will help us build our future. That is why we are creating a flexible, cost-effective industrial system with a partner as capable as Geely Auto. Together, we can unlock the full potential of an excellent plant with an outstanding workforce and achieve the industry’s new cost benchmark.”

^{Photo: Geely Auto}