Ford and Geely they just announced the creation of a joint venture type company to produce vehicles at the Spanish plant AlmussafesValencia. As we already told you in Autonoción, both companies had been negotiating an industrial alliance for some time to share production in Spain.
The agreement occurs now, ensuring the industrial future of the Valencian complex. Both manufacturers reveal that the strategy will involve take advantage of a line of work already existing with production of four new models.
Four new models to be produced by 2028
As confirmed by both companies, the plant will produce a total of four vehicles completely new. On the part of ford two models will arrive multi-energythat is, designed to mount an electric propulsion system or a combustion engine under the same platform. This strategy will allow cars to be adapted depending on the demand of each market.
Geely, for its part, will assemble two 100% electric vehicles destined mainly for Europe. The first of them will be responsible for inaugurating production in 2028. Although details on the specific models have not yet been provided, the alliance will make it possible to take advantage of the industrial capacity of Almussafes, one of Ford’s most advanced factories in Europe and with the potential to manufacture around 500,000 vehicles per year.
Ford’s next SUV won’t arrive until 2028
Until now, the Ford Almussafes plant It focused its production on the Ford Kuga. This is one of the brand’s best-selling and most veteran SUVs in Europe. However, The factory had been working below its maximum capacity for some time.. Among the main reasons are the cessation of production of the company’s best-selling models. Some of them like the Ford Focus (note, produced in Almussafes) and the Ford Focus.
In its best years, Almussafes managed to manufacture 6 models simultaneously. Thus it became one of the most important Ford factories in Europe. Added to this situation are the electrification of the market and the fall in demand of some combustion models. Both factors forced Ford to rethink the future of its European plants.
As part of that strategy, the company awarded Ford Almussafes the production of a new compact SUV inspired by the Ford Bronco family. However, its manufacturing is not scheduled until 2028. Given this situation, the alliance with Geely will allow the plant’s workload to increase. At least, until that new model arrives.
Result: Geely buys an entire ship
The trade agreement has led to the acquisition of the Body 3 Ship from the Almussafes factory by Geely. Discontinued Ford models were manufactured at these facilities. Among them, the Ford Mondeo, S-Max or Galaxy. This will be the area in which the Chinese industrial group will manufacture two 100% electric cars: one for Ford, with the blue oval logo, and another for Geely, both “made in Spain.”
This collaboration does not come from nowhere: Geely and Ford “already knew each other” before. In 2010, Ford sold the Volvo brand to Geely. and since then it controls the Swedish manufacturer. Now, under a changing scenario in the automotive segment and marked by the increase in development costs, the electrification of the market and the arrival of new Asian agents, this alliance should help maintain production, jobs and investment of both brands.
One more advantage for Geely: no tariffs
Manufacturing directly in Spain will reduce logistics costs. Also avoid tariffs on electric vehicles imported from China. Finally, it will bring production closer to the European customer. Added to this is another advantage: manufacturing within the European Union will allow Geely respond more quickly to demand, reduce delivery times and reinforce its image as a manufacturer with an industrial presence in Europe.
For Ford, this alliance means a way to increase the competitiveness of your business European. All this without having to bear the cost of maintaining an underused plant alone. Sharing facilities with Geely will allow Almussafes to increase its workload, distributing industrial costs in the process.
By the way, Geely also maintains agreements with Renault through Horse Powertrain, whose European headquarters is located in Seville. Thanks to this alliance Hybrid engines are already manufactured in Spain for models such as the Dacia Bigster and other Renault group vehicles. Now, Chinese brands are not just new, but have come to establish themselves in Europe and grow even more in the market. And with the permission of historical manufacturers such as Ford, among many others.
