The deal that could save Almussafes: Geely to build hybrid and electric cars at Ford’s Valencia plant

Ford and the Chinese group Geely have sealed a historic agreement whereby the American manufacturer will cede part of its Almussafes plant, near Valencia, thereby paving the way for Geely to manufacture electric vehicles in Spain.

This deal would allow Geely, owner of brands such as Volvo, Polestar, or Link & Co, to have a production base within the European Union for its Geely brand’s Chinese models, for instance. It would help it sidestep European tariffs on electric vehicles imported from China, as well as give it direct access to the European market.

Ford needs to save Almussafes and Geely sell outside China

For Ford, and especially Almussafes, this news aims to save the factory and the jobs, at least in theory. Ford has long left one of its best and largest factories on the continent completely underutilized.

Currently it only manufactures the Ford Kuga, but with a capacity of 400,000 cars per year, Almussafes produced only 98,500 vehicles in 2025. While Ford plans to award new models to the Valencian plant, such as the European Ford Bronco, selling part of the factory to Geely acknowledges that even then they will not be enough to reach 400,000 cars per year.

The arrival of Geely, however, is not intended to rescue Ford. Geely, like the rest of the Chinese brands, needs to break free from dependence on the Chinese market. Thus, this deal underscores the growing pressure on Chinese automakers to expand abroad, as competition intensifies in a Chinese market saturated with models and in the midst of a model war. After all, overseas markets are seen as the only way to sustain growth and revenue.

Geely has taken over assembly line number 3 at Ford’s Almussafes plant (Valencia), from which Mondeo, Galaxy and S-Max used to roll off, to produce a new multi-energy model (hybrid, plug-in hybrid and 100% electric) based on its GEA platform.

Several sources point to the model the Chinese manufacturer will build in Spain as the European version of the Geely EX2, a 4.13-meter urban SUV which, under its original name Geely XingYuanle, is the best-selling car in China.

One of the many uncertainties is whether it will be full manufacturing, including body stamping and welding, or an assembly from SKD or CKD kits imported from China, a approach far less investment-, employment-, and supplier-intensive, with less real transfer of industrial know-how.

While in April, industry sources reportedly told Economía Digital that contacts with local suppliers had already begun. In other words, it would be the same approach as in Figueruelas with Leapmotor: leveraging Spain’s industrial and component ecosystem, which ultimately helps ensure the survival of our automotive industry.

The official announcement is expected to be made this Thursday during a visit to the Almussafes plant by the Spanish Prime Minister, Pedro Sánchez, and Ford Europe’s president, Jim Baumbick.

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