Geely plans to turn Ford’s factory in Spain into a hub for Europe

Image: Geely

The Chinese Geely Holding and the American Ford Motor Company have announced an agreement to form a new joint venture. This partnership will be based at the production facility in Valencia, Spain. The goal of this collaboration is to manufacture vehicles with various propulsion technologies for the Ford and Geely Auto brands.

Production is intended to meet the specific needs of European customers. Geely plans to produce two electrified SUV models at the Valencia plant. The first of these new vehicles are expected to roll off the assembly line starting in 2028.

The joint venture is scheduled to begin operations in the first half of next year, provided all regulatory approvals are obtained. According to AutoExpress, Geely does not intend to use the plant merely as a satellite facility. Instead, the Chinese company aims to fully integrate into existing structures.

Victor Yang, Executive Vice President of Geely Holding Group, emphasizes the importance of local talent. “We will rely on the expertise and workforce here in Valencia,” he told AutoExpress. Additionally, building a supply chain ecosystem is set to be supported through joint procurement processes.

By leveraging scale advantages from China and Europe, the cost efficiency of both products and the manufacturing site is intended to be improved. Geely has long-term goals for the European market. According to Yang, the company aims to manufacture between one-third and half of its sales volume in Europe locally.

The partnership with Ford Valencia is meant to serve as a core base for this expansion. The Chinese company already has experience in Europe, as it is the parent company of Volvo, which it acquired from Ford in 2010.

"This strategic partnership with Ford is an important step toward an open and mutually beneficial relationship. It represents a significant milestone in Geely Auto’s global development and will further strengthen our presence in Europe," said Alex Nan, Vice President of Geely Auto Group, at the announcement of the collaboration. "Our goal is to offer vehicles that European customers choose out of conviction—due to their cutting-edge technology, high quality, and active contribution to a sustainable future for Europe."

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Thomas Langenbucher is an expert in electromobility with professional experience in the automotive industry and finance sector. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.

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