Ford and Geely Partner for EV Production at Spain’s Valencia Plant

In a move that highlights the shifting dynamics of the global automotive sector, China’s Zhejiang Geely Holding Group and American automaker Ford Motor Company have announced a new joint venture to produce electric vehicles (EVs) at Ford’s Almussafes plant in Valencia, Spain. The joint venture is slated to begin operations in the first half of 2027, with the first production-ready electric vehicles scheduled to roll off the assembly line by 2028. This partnership represents a critical development for the historic Spanish facility and marks a significant step forward in Geely’s ongoing European expansion.

For Geely, which already boasts a substantial European footprint through its ownership of Volvo Cars, Polestar, and its joint ventures with Mercedes-Benz, manufacturing within the European Union is a highly strategic maneuver. Establishing a localized production base in Spain allows the Chinese automotive giant to mitigate risks associated with rising EU import tariffs on Chinese-made electric vehicles. By producing vehicles locally, Geely can bypass geopolitical supply chain bottlenecks and integrate more seamlessly into the European market, utilizing Ford's established infrastructure to scale up its regional presence.

The deal brings much-needed relief to the Valencia plant, which has faced mounting economic uncertainty in recent years as Ford restructured its European operations and phased out several legacy passenger models. The Almussafes facility, which employs thousands of workers, has been the subject of intense union negotiations regarding its transition toward electrification.

Key Project Milestones:

• First Half of 2027: Official commencement of joint venture operations at the Almussafes facility.
• Late 2027: Retooling of assembly lines to accommodate Geely's proprietary EV platforms and battery integration systems.
• 2028: Commercial launch of the first generation of co-produced electric vehicles targeted at European consumers.

This partnership is part of a broader, emerging trend of collaboration between legacy Western automakers and Chinese EV powerhouses. Rather than competing directly in every segment, companies are increasingly sharing the immense financial and technical burdens of the transition to clean energy. For Ford, partnering with Geely—which has a proven track record of managing successful European brands—helps distribute the massive capital expenditures required for next-generation vehicle development. As the European Union pushes ahead with its strict zero-emission goals, the success of the Valencia joint venture could serve as a critical blueprint for future cross-continental automotive alliances.