The global automotive industry is entering a period where collaboration has become just as valuable as competition. Manufacturers are no longer relying solely on independent development to remain competitive in a rapidly evolving market shaped by electrification, changing consumer expectations, and global economic pressures. Instead, strategic partnerships are creating new opportunities that allow companies to maximize resources, accelerate innovation, and strengthen their positions across international markets. The latest agreement between Ford and Geely reflects this changing landscape, demonstrating how two major automakers with different strengths can work together to achieve shared goals while preserving their individual identities.

At the center of this landmark partnership is Ford’s historic Almussafes manufacturing plant near Valencia, Spain. Once regarded as one of Ford’s most productive facilities outside the United States, the plant has experienced years of declining production as market conditions shifted and manufacturing priorities evolved. Operating well below its designed capacity created uncertainty for employees, suppliers, and the surrounding community. Rather than allowing one of Europe’s most important automotive facilities to remain underused, Ford has chosen a collaborative solution that transforms existing challenges into long-term opportunities for growth, investment, and industrial renewal.

The agreement with Geely represents far more than a manufacturing arrangement. It illustrates how established manufacturers and rapidly expanding global brands can combine their strengths to improve efficiency, expand product offerings, and prepare for the next generation of mobility. By bringing together Ford’s manufacturing expertise and Geely’s growing technological capabilities, the partnership creates a stronger foundation for future vehicle development while reinforcing Spain’s position as one of Europe’s leading automotive production centers.

1. A Historic Factory Begins a New Chapter

The Almussafes manufacturing plant near Valencia, Spain, has long been one of the most important facilities in Ford’s global manufacturing network. At its peak, the plant produced around 450,000 vehicles annually, making it one of Ford’s largest production sites outside the United States. It also served as a major employer, creating thousands of direct and indirect jobs while supporting suppliers and strengthening both the regional and national economies. For decades, Almussafes played a key role in Ford’s European operations and global automotive presence.

Key Highlights of the Factory’s Transformation:

• Long-standing European manufacturing hub
• Major contributor of automobiles to the global market
• High employment and indirect benefits generated
• Production levels dropped considerably
• Partnership offers future manufacturing prospects

Over the years, however, the Almussafes plant experienced a steady decline in production as Ford adjusted its global manufacturing strategy to meet changing market demands. Operating well below capacity, the facility was using less than a quarter of its production potential. By 2025, annual output is expected to fall below 100,000 vehicles, a sharp contrast to the 450,000 vehicles it once produced. This decline left one of Ford’s most valuable manufacturing facilities significantly underutilized.

That situation is now expected to change with Ford’s decision to partner with Geely through a joint venture. The collaboration aims to revive the Almussafes plant by making better use of its existing infrastructure and production capacity. By working with an experienced global automaker, Ford can maximize the value of the facility while benefiting from Geely’s manufacturing expertise, ensuring the plant continues serving its original purpose with stronger long-term prospects.

2. A Joint Venture Built on Shared Opportunity

The joint venture between Ford and Geely offers clear advantages for both automakers by combining their strengths. Under the agreement, Ford will retain a 66 percent majority stake, while Geely will own the remaining 34 percent. This structure allows Ford to maintain control of the venture while Geely gains a meaningful share in the project. Together, the companies will maximize the value of the Almussafes plant, turning underused capacity into a productive asset while also supporting the local economy through better use of existing facilities.

Key Features of the Joint Venture:

• Ford retains majority ownership of the venture
• Geely acquires significant stake in the deal
• Ford Almussafes’ existing line will be utilized
• Lowered costs and maximized benefits
• Shared expertise will benefit both partners

A major advantage of the partnership is the decision to use an existing assembly line at Almussafes instead of building a new factory. This approach reduces construction costs, shortens the project timeline, and makes better use of the plant’s available production capacity. By utilizing existing infrastructure, the joint venture can begin operations more efficiently while maximizing the value of Ford’s manufacturing facility.

The partnership also reflects a broader shift in the automotive industry, where collaboration is becoming increasingly valuable. Instead of relying solely on competition, Ford and Geely will benefit from each other’s manufacturing expertise, experience, and resources. Their decision highlights how established automakers can strengthen their operations by working together while creating greater long-term value for both companies.

3. Unlocking the Plant’s Full Manufacturing Potential

Ford Europe president Jim Baumbick laid out the rationale behind the partnership by saying that its main goal is to utilize the Valencia plant to maximum. It shows that Ford prioritizes the long-term prospects of one of its largest European manufacturing sites, and the decision was made to ensure that the facility continues to be a significant asset in the future.

Key Benefits of Full Capacity Utilization:

• Production efficiency maximized
• Multiple brand manufacturing
• Regional economic impact maximized
• Local suppliers supported
• Long-term manufacturing strategy

Industry experts are predicting that after implementing the partnership, the Almussafes plant will be able to produce almost half a million cars annually. It will allow the facility to become a multi-brand manufacturer, which means that it will be able to produce several types of vehicles simultaneously. Moreover, higher production rates will ensure that the plant works at an extended level, thus, maximizing efficiency and minimizing idle time. At the same time, creating additional manufacturing capacity will have a positive impact on the regional economy and the future of the auto industry in Spain.

A manufacturing facility that is operating at its maximum capacity has extensive implications for the local economy. It creates demand in other industries, such as logistics and parts suppliers, and helps sustain high levels of employment. Additionally, the presence of a large-scale manufacturer can have a beneficial effect on the surrounding area. The increased capacity of the Almussafes plant will generate greater economic value for Spain, which will further strengthen its position as one of the leaders in the EU auto manufacturing market.

4. A Diverse Vehicle Lineup for the European Market

Ford’s production strategy for the European market, defined by the partnership, can be seen as a balance between maintaining the status quo and pursuing aggressive expansion. Following the strategy, Ford will be able to keep the production of its bestselling Kuga plug-in hybrid going, which will make the production process stable and provide an opportunity to prepare for the launch of other programs. At the same time, Ford will be able to pursue expansion by gradually introducing new projects and preparing the plant for further growth. The strategy helps to maintain a stable production rate while providing enough flexibility to adapt to the changing conditions of the automobile market.

Key Elements of the Production Strategy:

• Keeping Kuga hybrid production stable
• New Bronco production to start
• Electric SUV production ramped up
• Multi-energy family crossover produced
• Flexibility provided for future demand

According to the production strategy, in 2028, Almussafes will be able to start the production of several new programs. One of them will be the new Ford Bronco, which will mark the debut of one of the most popular Ford models outside of the U.S. In addition, Geely will be able to introduce two electric sport utility vehicles at the Almussafes plant. The decision to offer battery-powered cars fits in with the trend of electromobility in the European market.

Ford and Geely plan to produce a new multi-energy family crossover as well, which will highlight their strategy of offering diverse vehicles for the European market. It can be expected that the new models will be powered by various propulsion systems, including hybrid, plug-in hybrid, and fully electric ones. Moreover, the new crossover will serve as an excellent demonstration of the flexibility of the manufacturing process at the Almussafes plant. It will be able to accommodate the production of different vehicles, which will provide a greater ability to meet the diverse demands of the automobile market.

5. Geely’s European Expansion Strategy

Geely is one of the largest and fastest-growing car manufacturers in China. Its strategy focuses on international expansion, and the company has been able to gain significant success in the foreign market. As the competition in the domestic market increases, Geely is pursuing an aggressive strategy of growth, which is being manifested by the high rates of exports. The growing popularity of Geely’s brands in different parts of the world is yet another sign that the company is performing extremely well and has ambitions to become an international automaker.

Key Drivers of European Expansion:

• Strong international expansion focus
• Geographical market diversification
• Manufacturing in the EU boosts competitiveness
• Faster deliveries to the European market
• Higher production efficiency

Establishing a presence in the EU market is a natural consequence of Geely’s strategy of international expansion. The decision to open a manufacturing facility in Spain demonstrates that the company wants to get closer to its customers by being able to provide them with shorter supply chains. It will allow Geely to satisfy the growing demand for its products while gaining a competitive advantage over other manufacturers who only sell their vehicles in Europe by exporting them from China. The strategy will be beneficial for Geely because it will reduce its supply chain complexity, making some aspects of the manufacturing process more efficient.

One of the reasons why the Ford Geely partnership was so appealing to Geely is that it did not require the company to go through a lengthy and complicated process of opening a new manufacturing facility. Instead, by partnering with Ford, Geely was able to use the existing infrastructure and Ford’s production technologies to begin the manufacturing process right away. It will allow the company to build on Ford’s strong local network of suppliers and take advantage of the skilled labor force in Spain. Those factors will significantly increase the efficiency of the joint manufacturing venture and contribute to the success of Geely in the European market.

6. Manufacturing Inside Europe Creates Strategic Advantages

As mentioned above, Geely’s decision to manufacture cars inside Europe will have tremendous strategic value for the company. The location of the Almussafes plant means that Geely can serve the European market from within the EU, which reduces the risks associated with trade between the two regions. Additionally, the decision will allow Geely to maximize the value of its presence in the EU while minimizing costs associated with transporting its vehicles from China to Spain. The value of manufacturing inside Europe cannot be overstated, as the ability to localize production helps automakers achieve numerous strategic objectives.

Key Strategic Manufacturing Benefits:

• Lower costs of import tariffs
• Shorter logistics supply chains
• Faster deliveries of electric vehicles
• Local infrastructure expedites production
• High-skilled labor force utilized

The fact that Geely will be able to manufacture electric cars within the EU is extremely advantageous for multiple reasons. First and foremost, local production means that there will be no additional costs associated with importing vehicles from China. Reduced expenses will result in lower prices for the consumers. At the same time, shorter supply chains will make the distribution of the vehicles faster and more efficient. They will also reduce the environmental impact of Geely’s operations, as the transportation of the finished products will be minimized.

Another benefit of local manufacturing that should not be overlooked is that Geely can utilize Ford’s existing infrastructure to make the production process more efficient. Instead of spending years on the development of a new plant, Geely was able to repurpose Ford’s Almussafes facility to begin manufacturing operations almost immediately after the announcement of the joint venture. It will allow Geely to get more value out of its investment and enter the European market much faster than would be possible in the case of a greenfield project.

7. Ford Turns an Operational Challenge into Long-Term Value

The joint venture between Ford and Geely benefits both companies, but it offers several important long-term advantages for Ford. Allowing Geely to use the Almussafes plant helps Ford make better use of its underutilized manufacturing capacity while supporting jobs in Spain. The agreement also strengthens Ford’s long-term growth strategy and promotes more sustainable manufacturing in the Valencia region.

Key Long-Term Benefits for Ford:

• Greater utilization of manufacturing capacity
• Support for local employment sustainability
• Higher production efficiency achieved
• Opportunities for future technology partnerships
• Long-term value for the local economy

One of Ford’s key goals in forming this partnership was to ensure that valuable manufacturing assets would not go to waste. By keeping the Almussafes plant operating at a stable level, Ford can improve production efficiency and continue using equipment that might otherwise have remained idle or been scrapped. Better use of the plant will also benefit the local economy by supporting businesses, suppliers, and logistics companies. Increased production can help create more jobs, reduce unemployment, and contribute to regional economic growth, extending the positive impact beyond Ford’s own workforce.

Beyond operational and economic benefits, the partnership also creates opportunities for future innovation. Ford and Geely can work together on hybrid, plug-in hybrid, and battery electric vehicles while also developing advanced software for modern automobiles. This collaboration will help Ford remain competitive and better meet the changing demands of the automotive industry.

8. Leadership That Embraces Collaboration

The value of the Ford-Geely partnership goes beyond manufacturing and economic benefits. According to Ford CEO Jim Farley, the alliance reflects his belief that successful automakers must balance competition with collaboration. Farley sees Chinese manufacturers as highly competitive and influential, making partnerships with them an important part of the industry’s future.

Key Leadership and Collaboration Principles:

• Strategic alliances have tactical value
• Collaboration drives innovation
• Mutual expertise bolsters competition
• Global automakers must learn to cooperate
• Leadership embraces economic and industry realities

This approach is part of Ford’s broader strategy. By partnering with other automakers, the company gains access to valuable expertise and resources while reducing research and development costs. Strategic alliances also allow companies to share development expenses and work together on new technologies and products that better meet customer needs.

Collaboration has become increasingly important as automakers look for ways to reduce costs while staying innovative in a highly competitive global market. Strategic partnerships help companies remain efficient, strengthen their capabilities, and continue delivering products that meet changing consumer expectations. Ford has built its reputation through iconic vehicles such as the F-150, Super Duty, Explorer, and Bronco. However, like every global automaker, it must adapt to changing market conditions. Its partnership with Geely reflects a practical business strategy that helps Ford remain competitive while preparing for the future of the automotive industry.

9. Spain Strengthens Its Position as a European Automotive Hub

The joint venture between Ford and Geely benefits not only the two companies but also Spain’s economy. In recent years, Spain has faced increasing competition from other European countries for automotive investment. The visit by Spanish Prime Minister Pedro Sánchez to the Almussafes plant highlights the importance of keeping Spain among Europe’s leading automobile manufacturing nations.

Key Factors Behind Spain’s Growth:

• Highly skilled local workforce
• Automotive supplier industry
• Lower costs of manufacturing
• Growing attraction for investors
• Greater impact on the European economy

According to Sánchez, the investment by Ford and Geely reflects the confidence of global automakers in Spain’s competitive advantages. He noted that the country’s strong supplier network is well prepared to support the future of electromobility. With continued government support, local manufacturers can become more competitive while expanding the automotive supply chain. The partnership is also expected to strengthen Spain’s position as one of Europe’s leading vehicle manufacturing hubs, create new jobs, and contribute to long-term economic growth.

Spain’s automotive industry had faced challenges in recent years, but renewed investment is helping reverse that trend. Chery and Ebro are reviving the former Nissan plant in Barcelona, while Stellantis and Leapmotor plan to expand manufacturing in Madrid. In addition, Stellantis and CATL have announced a major battery manufacturing project in Zaragoza. Together with the Ford-Geely partnership, these investments further strengthen Spain’s role as a major automotive manufacturing center in Europe.

10. A Partnership Built on Experience and a Shared Vision for the Future

The strategic alliance between Ford and Geely shows how both companies can benefit from collaboration. Geely aims to expand its production and strengthen its presence in the European market, while Ford seeks to maximize the value of its manufacturing assets. Their partnership builds on a relationship that began more than 16 years ago when Geely acquired Volvo from Ford, creating a foundation of trust and shared experience.

Key Foundations of the Partnership:

• Long-standing business relationship
• Access to the expertise and experience
• Flexible approach to vehicle production
• Partnership promotes further innovation
• Mutual understanding supports forward-thinking goals

The new alliance builds on the legacy of cooperation between the two automakers. Industry analysts believe Geely could use the Almussafes plant to produce right-hand-drive versions of the Geely EX2 (Xingyuan) and electrified variants. This would allow the joint venture to offer hybrid, plug-in hybrid, and battery electric vehicles while expanding localized production for European markets.

Beyond the vehicles themselves, the partnership reflects a broader shift in the automotive industry toward strategic collaboration. By combining Ford’s manufacturing expertise with Geely’s innovation and localization capabilities, both companies can reduce development costs, improve production efficiency, and strengthen their market presence. The alliance also supports jobs in Spain while delivering long-term benefits for customers, employees, suppliers, and the wider automotive industry.