Geely to acquire stake in Ford's Spanish plant

The Chinese automotive group Geely is set to acquire a 34 percent stake in Ford's Almussafes manufacturing plant near Valencia, Spain, starting in 2027. This move follows a period of significant decline for the facility, which recently recorded its worst production year with only 98,500 Ford Kuga models manufactured by 4,100 employees.

Historically, the plant has been a major site for Ford, including the production of the Ford Fiesta which began in 1977. The recent downturn is attributed to Ford's delayed transition to electric vehicles and a mismatch between its product lineup and European market trends.

Geely's entry into the Spanish market is part of a broader strategy by Chinese automotive companies to establish a manufacturing presence within the European Union. By producing models locally, these companies aim to circumvent potential protective tariffs. Geely's portfolio includes several brands such as Volvo, Polestar, Lotus, and Zeekr.