Ford and Geely are back together. This time, instead of selling Volvo, they're sharing a factory
Sixteen years ago, these two names last appeared on the same document. Back then, Ford was selling Volvo for $1.8 billion because it desperately needed cash, while Geely, a company most Europeans had never heard of, was buying the Swedish brand with a plan that seemed almost unbelievable. The plan worked. Volvo is alive and well, and in the meantime Geely has acquired Lotus and Polestar and become a major shareholder in Aston Martin. Now the two companies are back at the table, but this time the roles are completely different. If the statements from both companies are to be believed, all of this is expected to happen without interrupting production of the Ford Kuga.
W tym artykule:
- Ford and Geely join forces again
- Ford's Valencia factory has been waiting years for new models
- What does Ford gain, and what does Geely gain?
- Ford will cut the cost of developing new electric cars
- Geely will manufacture cars in the European Union
- Production in Valencia is expected to begin in 2028
- Kuga production is expected to continue
- Spain is becoming a European hub for Chinese carmakers
- More Chinese brands are investing in Spain
- Why is taking over a production line cheaper than building a new factory?
- What does the Ford and Geely partnership mean for the European automotive industry?
- History has come full circle
Ford and Geely join forces again
Today, Ford has something it isn't fully using: a factory in Valencia operating at only a fraction of its capacity. Geely, meanwhile, has exactly what Ford lacks most in Europe: a modern, cost-effective electric vehicle architecture and the ability to rapidly scale up production on the continent.
Ford's Valencia factory has been waiting years for new models
The Almussafes plant near Valencia can theoretically produce up to half a million cars a year. For some time now, however, it has been operating far below its potential.
Only the Kuga remains in production, and the plant's third assembly hall has stood empty for months. Ford, which for years treated Europe somewhat like an overlooked relative invited to family gatherings out of obligation, has finally had to admit that it has no clear plan for bringing the factory back to life on its own.
What does Ford gain, and what does Geely gain?
Chinese media have been blunt. This is not ordinary industrial cooperation but a marriage of convenience in which both partners know exactly what they're getting.
Ford will cut the cost of developing new electric cars
Ford gains a partner that can help utilize its unused production capacity while introducing the GEA (Geely Electric Architecture) platform. That should reduce the need to bear the enormous costs of developing additional in-house electric vehicle platforms for mass-market models.
Geely will manufacture cars in the European Union
In return, Geely gains the ability to manufacture vehicles in Spain. If those vehicles satisfy the EU's rules of origin, they will not be treated as imports from China and therefore will avoid the additional tariffs imposed on Chinese-made electric vehicles.
Production in Valencia is expected to begin in 2028
According to Chinese media reports, production under the partnership is expected to begin around 2028.
The Valencia plant is reportedly expected to build a new Ford crossover developed jointly with Geely, another Bronco family model, and two electric SUVs for the Chinese manufacturer. Ford has not officially confirmed the full scope of the planned production. These reports should therefore still be treated as unconfirmed.
Kuga production is expected to continue
If both companies' statements are accurate, all of these changes will be implemented without stopping production of the Kuga. That alone would be a considerable logistical achievement, as very few factories are able to maintain current production while simultaneously preparing for an entirely new manufacturing program.
Spain is becoming a European hub for Chinese carmakers
What many reports about this agreement overlook is the much broader context.
Over the past several months, Spain has emerged as one of the most important European destinations for investment by Chinese automakers.
More Chinese brands are investing in Spain
SAIC is expanding its logistics and industrial operations in Galicia. Chery has revived the former Nissan plant in Barcelona under the Ebro brand, which is rapidly increasing both its sales and production scale. There have also been reports that BAIC is exploring opportunities in the Spanish market.
Rather than viewing these investments with concern, the Spanish government has openly welcomed them. Prime Minister Pedro Sánchez personally attended the signing ceremony in Almussafes, sending a clear political signal that the project enjoys the government's full support.
Why is taking over a production line cheaper than building a new factory?
Acquiring an underutilized production line costs only a fraction of what it would take to build a brand-new factory and saves several years in the process. For Geely, the calculation is as straightforward as choosing between buying a well-maintained used car and building one from scratch.
What does the Ford and Geely partnership mean for the European automotive industry?
Does this mean that, in a few years, European roads will be filled with Fords co-developed by engineers in Hangzhou and Geely vehicles assembled by Spanish workers who, until recently, were building cars powered by internal combustion engines?
Everything suggests that this is exactly where the European automotive industry is heading.
History has come full circle
Sixteen years ago, Ford sold Volvo to Geely to secure its own future. Today, it is returning to the same partner, not to sell another company, but to build cars together.
In the automotive industry, history rarely comes full circle in such a literal way.
