Ford and Geely Form 66-34 Joint Venture to Build EVs in Spain: What the Deal Means

Plant Location and Workforce

The facility is Ford's Valencia Assembly Plant in Almussafes, about 20 km south of Valencia, Spain . The plant and its approximately 4,200 workers will be transferred to the new joint-venture company . The workforce is expected to grow as production ramps up, though exact hiring numbers have not yet been finalized .

Vehicles Planned for Production

The core announcement covers three newly developed vehicles to be built at the plant starting in late 2028, in addition to Ford's continued production of the Kuga and Bronco :

• Two Geely-branded electric SUVs, built on Geely's dedicated EV architecture
• One Ford multi-energy crossover (capable of multiple powertrain types), developed on Geely's platform and co-engineered by the two companies

Some sources count a total of four to five models under the combined agreement when including Ford's existing Kuga and Bronco lines that will continue at the plant .

Production Target and Capacity

The joint venture aims to eventually reach full capacity of approximately 500,000 vehicles per year, which would surpass the plant's historical peak of roughly 449,000 units . By contrast, the facility had been producing fewer than 100,000 vehicles annually in recent years, operating at well below its potential .

Strategic Motivations for Each Company

For Geely — Avoiding EU tariffs: The European Union imposes an 18.8% countervailing duty on Geely's battery-electric vehicles imported from China, on top of the standard 10% import duty . By manufacturing inside the EU, Geely bypasses these tariffs entirely . This tariff-avoidance strategy mirrors a broader trend among Chinese automakers seeking to establish local production bases in Europe to circumvent trade barriers .

For Ford — Reviving an underutilized plant: The Almussafes facility had been operating at well below capacity as Ford shifted its European EV strategy. The joint venture fills idle assembly lines and secures the plant's long-term future, providing a financial lifeline for an asset that was otherwise struggling . Ford CEO Jim Farley, who has publicly praised Chinese automakers for their speed and products, described the partnership as a way to compete more effectively in Europe .

Regulatory Timeline

• Joint venture operations are expected to begin in the first half of 2027, pending regulatory approvals
• First production vehicles are scheduled to roll off the line in late 2028

Political Involvement

Spanish Prime Minister Pedro Sánchez visited the Almussafes factory on July 23, 2026, to welcome the agreement in person. He said the deal demonstrated Spain's ability to attract international investment and anchor automotive manufacturing in the country . Sánchez had also played a direct role in facilitating the deal through earlier government engagement, and his presence at the announcement underscored the political importance of the agreement for Spain's industrial policy . Regional President of the Generalitat Valenciana, Juanfran Pérez Llorca, also attended the event .