China’s Geely has agreed to take over part of Ford’s factory near Valencia, Spain, to build electric SUVs on an idle assembly line, the companies announced on July 23, 2026 [1, 2, 3]. The joint venture will operate at Ford’s Almussafes plant, located near Valencia, where the current Ford Kuga crossover will continue to be produced alongside Geely’s new vehicles [1, 3].
The JV will be majority owned by Ford with a 66% stake, while Geely will hold about 33% to 34%, according to differing reports [2, 3]. Geely Senior Vice President Victor Yang said, "We need to rely on strong partners with the right know-how and expertise to support our localisation efforts" [2].
Geely plans to produce electric SUVs, including the EX5 model which is already sold in Europe at other facilities, marking their first production site on European soil [4, 2]. Ford’s European head Jim Baumbick said, "We have the ability to really load up the facility. That’s the goal" [2].
The joint venture is expected to start operations in the first half of 2027, with production of the first vehicles scheduled for 2028 [2, 3]. This cooperation builds on the long-standing relationship between the two automakers, dating back to Geely’s 2010 purchase of Volvo Cars from Ford [2, 3].
Spanish Prime Minister Pedro Sanchez publicly supports the JV, viewing it as a boost for Spain’s role in European automotive manufacturing and the green transition [1, 4]. The agreement also allows Geely to manufacture within the European Union, avoiding import tariffs on Chinese EVs [4].
Several other Chinese automakers, including BYD, Chery, BAIC Motor, and Hongqi, have also expanded production capacity in Spain through partnerships and factories [1, 2]. Electric car registrations for Chinese brands in Europe rose to 5.4% in June 2026 from 3.4% in June 2025, reflecting growing market presence [1].
The JV formalization is planned to take place soon at the Almussafes plant. Operations will begin in early 2027, aiming to produce the first electric SUVs under the Geely brand by 2028 [2, 3].
