Tie-up breathes new life into plant near Valencia and signals Chinese carmakers’ stepped-up push to go global amid tariff pressures
2-MIN READ2-MINDaniel Renin ShanghaiPublished: 7:30pm, 23 Jul 2026Geely Auto, China’s second-largest carmaker, has struck a deal with Ford Motor to use the US company’s redundant capacity in Spain to build electric vehicles (EVs) amid its stepped-up push to expand globally.Multi-energy cars would be assembled at an idle factory in Almussafes, near Valencia, after the two companies set up a venture, with deliveries expected to begin in 2028, according to a statement by Geely on Thursday.
The Chinese group would hold a 34 per cent stake, while Ford would control 66 per cent, it added. Three Ford-branded multi-energy vehicles and two electric Geely-branded models would be assembled at the plant.
“By optimising factory utilisation and sharing development costs, the partnership will bolster operational excellence and provide long-term stability and employment opportunities for Valencia’s world-class automotive workforce,” Geely said in the statement.
The tie-up highlights a growing trend of Chinese carmakers deepening their European foray by tapping international marques’ excess production facilities.
Chinese EV makers are powering ahead in Europe, and local production sites can eventually help them avoid tariffs thereGao Shen, independent analystThe plant in Spain, once Ford’s largest factory outside the US, had been running at less than a quarter of its annual capacity of 450,000 vehicles, according to Bloomberg.
