- Geely's 34% acquisition of Ford España restores an equity partnership in vehicle manufacturing and reflects a push to localize production in Europe amid tariff and delivery pressure.
- The Almussafes plant has ~500,000 annual capacity, the JV targets operations H1 2027 and first new model in 2028, and Geely reported 691,000 overseas sales through Aug 2026.
- The deal targets EU passenger‑vehicle market competition and tariff mitigation, but closing depends on approvals from SAMR, the EU and Spain, plus execution risks in integration and scaling.
On Sept. 7, China’s State Administration for Market Regulation (SAMR) published information showing that Geely Holding has signed a transaction agreement with Ford to acquire a 34% stake in Ford España, S.L.
Upon completion of the transaction, Ford’s stake will fall from 100% to 66%, while Geely will hold 34%, giving the two companies joint control of the Spanish entity.
Ford España is primarily engaged in passenger-vehicle operations in Spain. One of its key assets is a vehicle assembly plant in Almussafes, Valencia.
The plant was established in 1976 and has a designed annual capacity of around 500,000 vehicles, making it one of Europe’s largest vehicle manufacturing facilities.
This is not the first time Geely and Ford have worked together. In 2010, Geely acquired Volvo Cars from Ford for $1.8 billion.
The two companies did not establish a direct equity partnership afterward, but the latest transaction brings their cooperation back to vehicle manufacturing.
Under an agreement signed by the two sides in July, the joint venture is scheduled to begin operations in the first half of 2027, with its first new model expected to roll off the production line in 2028.
Geely and Ford previously announced the proposed 34%-66% ownership structure and the planned 2027 launch, pending regulatory approvals.
Rather than building a factory from scratch, Geely is opting to use existing capacity and enter a mature manufacturing operation through a minority stake, keeping both investment requirements and the construction timeline relatively manageable.
Geely’s move into local European production also comes as its overseas sales accelerate.
Geely Auto sold 691,000 vehicles overseas in the first eight months of 2026, up 170% year on year.
Overseas exports reached 110,094 units in August alone, up 205% year on year and 3% from July, marking the eighth consecutive month of year-on-year and month-on-month growth.
New energy vehicles are becoming an increasingly important part of that overseas growth.
Geely exported 70,629 NEVs in August, up 446% year on year and accounting for 64% of its total overseas exports.
Against the backdrop of the European Union’s additional countervailing duties on China-made EV, local production offers a practical way to mitigate tariff barriers and shorten delivery times, helping Geely sustain its growth in the European market.
Reflecting its long-term confidence in overseas growth, Geely Auto raised its 2026 overseas sales target to 920,000 vehicles from 640,000 and is targeting annual overseas sales of 1 million units.
However, the transaction has not yet been completed. The Sept. 7 announcement by SAMR is a procedural step in China’s antitrust review of concentrations of undertakings.
The two sides previously signed the transaction agreement on July 23, but the deal still requires approval from the European Union, Spain and other relevant regulatory authorities before it can close.
The proposed joint venture is expected to begin operations in the first half of 2027, subject to regulatory approvals.
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