This Chinese manufacturer will eventually take control of a portion of one of Spain’s largest car factories.
14/10/2026 21:00
Updated to
14/10/2026 21:00
The Chinese government has approved Geely Auto’s entry into Ford’s factory in Almussafes (Valencia) “without conditions.” This move will give the Chinese group 34% of the future joint venture, while Ford retains the remaining 66%. Despite this share difference, both companies will jointly manage the “strategic alliance” (joint-venture), with operations set to begin in the first half of 2027. The goal is to increase plant utilization, reduce production costs, and develop new vehicles together, including a multi-energy family crossover scheduled for 2028.
The approval comes from China’s State Administration for Market Regulation (SAMR), which has given the green light to one of the most significant industrial projects in recent years for the plant in Valencia.
The documents also confirm a key detail: Geely will be a minority shareholder, but that doesn’t mean Ford will control the future company on its own.
Ford will hold 66%, but control will be shared
The planned structure gives Ford 66% of the capital and Geely 34%, although both companies will jointly exercise control over the new enterprise.
That partnership will enable the two manufacturers to share industrial capacity, technology, and production volume without Ford losing its controlling stake.
The new joint venture is expected to begin operations in the first half of 2027, turning Almussafes into a shared manufacturing hub aimed at meeting the new cost standards set by China’s auto industry.
The logic is simple: producing more vehicles in the same facility allows fixed costs to be spread over a larger volume, improving factory utilization after years of significant activity decline.
A new SUV crossover will arrive in 2028
This strategy echoes other trends gaining traction across Europe: traditional automakers are seeking Chinese partners to accelerate the development of electric vehicles and reduce costs without giving up their European factories.
Almussafes can thus become one of the most significant examples of this new phase.
Chinese competition becomes part of the factory
This move also holds particular industrial significance. For years, European debates have focused on how to compete with Chinese manufacturers that produce vehicles at lower costs. In Valencia, the approach will be different: integrating one of those manufacturers directly into Europe’s production structure.
The deal was not without controversy either. The U.S. administration criticized the partnership, arguing it allowed a Chinese manufacturer to gain influence within Ford’s industrial operations.
In Almussafes, however, the stated goal is different: to increase production volume, reduce costs per vehicle, and enhance the competitiveness of one of Spain’s largest automobile factories.
With China’s approval already granted, the partnership enters a much more concrete phase. Geely will cease to be merely an Asian competitor and become Ford’s industrial partner in Spain as well.