China's Geely pays 221 million euros for 34% stake in Spanish joint venture with Ford

Geely Holding, the Chinese automotive giant, has finalized its acquisition of a 34% stake in a new joint venture with Ford, committing 221 million euros (over $251 million) to the deal. This strategic partnership values the new company at 650 million euros (nearly $740 million) and will oversee the operations of Ford's plant in Almussafes, Valencia, Spain.

According to a filing with the Hong Kong stock exchange, Geely's investment of 221 million euros secures its 34% share, while Ford will retain the remaining 66%. The joint venture, officially announced by both companies, is set to manufacture five models at the Almussafes facility. Three of these will be new models, joining the current Ford Kuga and a future Bronco model by the end of 2028.

“

This alliance will leverage the industrial capacity of Almussafes to manufacture vehicles for both brands, improve operational efficiency, and strengthen their presence in the European market.

This alliance is designed to leverage the Almussafes plant's industrial capacity for both brands, enhance operational efficiency, and strengthen their foothold in the European market. The operation, which was announced in Almussafes with the participation of Spanish Prime Minister Pedro Sánchez, anticipates the formal establishment of the joint venture in 2027. It is expected to integrate the factory's current 4,142 workers. Production will include two SUV models from Geely and a new Ford multi-energy crossover, alongside the two previously planned models for the plant.

Both companies assert that the alliance aims to maximize the utilization of the Valencian facilities and improve their competitiveness in the evolving automotive sector. They also indicated that the venture will necessitate an increase in the workforce, though specific hiring numbers have not yet been disclosed. The creation of this joint venture has been met with positive reception from unions and business organizations, who highlight the agreement's contribution to the stability of one of Spain's key industrial plants and its guarantee of future workload.

“

The creation of this joint venture has been received favorably by unions and business organizations, who highlight that the agreement brings stability to one of Spain's main industrial plants and guarantees work for the coming years.