Almussafes: Geely’s Entry Is Ford’s Plan to Fill the Car Plant Before It’s Too Late

Spain has become the laboratory where the Chinese industry is testing its European entry to dodge tariffs on Chinese electric cars. The agreement signed this Thursday between Ford and Geely at the Almussafes plant is the latest test. 

The factory that Ford opened fifty years ago in the Valencian Community moves into the hands of a joint venture in which the American manufacturer retains 66% and the Chinese party holds the remaining 34%.

One factory, two brands and five models

With this split, Ford is not selling part of the plant, as initially thought, but is ceding a minority stake in exchange for production volume and to guarantee that Almussafes does not close. Geely, which already controls Volvo, Lotus and shares Smart with Mercedes, thus enters the European market through the front door, bypassing tariffs that penalize cars manufactured in China.

Specifically, Ford will maintain production of the Kuga and will launch two new models in 2028. The multi-energy Bronco (hybrid and electric), already announced previously, and a new multi-energy crossover designed by Ford and developed together with Geely. The Chinese manufacturer, for its part, plans to launch two electric SUVs, the first of which is also slated for 2028.

While Geely opens Europe’s doors to the market by sidestepping tariffs on electric vehicles manufactured in China, Ford gains, in return, a guarantee of the plant’s survival. Considered one of Ford’s most efficient plants in Europe, the facility had suffered from the end of production of its four flagship models (Mondeo, S-MAX, Galaxy and Transit). With a capacity of at least 400,000 cars per year, in 2025 it produced just over 98,500 Ford Kugas.

Jim Baumbick, President of Ford Europe, summed up the operation with a phrase: “one team, two brands, five models.” Pedro Sánchez, present at the ceremony alongside the Geely Vice President, Victor Young, described the agreement as a demonstration of Spain’s ability to attract investment. 

The phrase fits with a strategy that Sánchez himself has been pursuing for years, based on trips to Beijing and taking a diplomatic stance on topics that could annoy the powerful Chinese partner, such as abstaining in the vote on tariffs for Chinese electric vehicles. 

Young, for his part, noted that there are no plans to bring Chinese workers to Spain, as is the case with CATL’s plant in Aragón. The joint venture will rely on local suppliers that already work with Ford in Almussafes, he said. The five-year objective is for European production to cover half of the electric vehicles Geely sells on the continent.

The move reinforces Spain as the preferred entry point for Chinese industry into Europe. Chery already assembles cars in kits in Barcelona, SAIC is preparing its arrival in Ferrol under the MG brand, and CATL is building in Zaragoza a gigafactory of batteries that will supply Stellantis and Leapmotor. 

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