“One team, two brands and five vehicles”. The president of Ford Europe, Jim Baumbick, confirmed this Thursday the “strategic alliance” of the blue oval firm with the Chinese giant Geely to jointly produce from the Valencian plant in Almussafes. In the presence of the President of the Government Pedro Sánchez, Baumbick and the executive vice president of Geely, Victor Yang, announced the creation, starting in 2027, of a joint venture to optimize the factory’s capabilities and be able to produce five vehicles from it starting in 2028. According to data provided by Ford, Almussafes has an annual capacity to produce half a million vehicles.
Read more Almost half of the wage increase to correct inflation does not reach the worker
With Geely, there are nine automotive plants from Chinese manufacturers expected in the coming years in Spain, which is already the main entry point for Asian companies into Europe. The first was Chery’s plant in Ebro, Barcelona.
The new company, whose name has not yet been revealed, will be 66% owned by Ford and 34% by Geely. A clear commitment and investment by the Asian firm to produce from Europe; the goal set by Yang is for half of the vehicles sold in Europe to be manufactured on the continent. Despite Geely’s strong entry into the new joint venture, Baumbick insisted: “We do not sell individual assets, we invest in manufacturing capacity.” Investment figures have not been provided.
Ford keeps 66% of the new brand, Geely, 34%
In this way, this strategic association aims to start producing up to five vehicles as early as 2028. The Kuga, the only one currently manufactured by Ford in a plant that has declined and with much uncertainty among its more than 4,000 workers, and the European version of the Bronco, which was already announced last May to be made from Almussafes. Three new cars will join these two vehicles. A multi-energy family crossover, designed by Ford and jointly developed with Geely, which will arrive in 2028, and two electric SUVs that Geely Auto plans to manufacture at the Valencia plant. These will be the first models of the Chinese brand to be manufactured under this joint venture (joint venture) and are also scheduled to roll off the production line in 2028.
The Kuga, the Bronco, a new family crossover, and two electric SUVs from Geely Auto will be produced
As explained by the two brand managers, the current factory workers will become part of this new company. “With the same conditions,” Ford sources confirmed. In this regard, the president of the works council, Carlos Faubel, who spoke later at the presentation of the agreement to the workforce, confirmed that “batteries may come from afar,” but that working conditions must be “those of the collective agreement.”
The idea outlined by Baumbick and Yang is to hire more employees (nearly 8,000 people used to work at the factory). “We will not bring labor from China,” Yang detailed, noting that he has committed to using local capabilities. A relief for the factory workers affected by continuous ERTEs.
Read more France adapts a military transport Airbus for firefighting
The strategic alliance has been sold as a long-term project to exploit economies of scale and reduce production costs without affecting the people working in Almussafes.
Sánchez and Llorca congratulate themselves on a “historic” agreement and highlight collaboration between administrations
After the announcement, the President of the Government, Pedro Sánchez, and the President of the Generalitat, Juanfran Pérez Llorca, visited the plant and shared the announcement with the workforce and the Ford and Geely executives. Sánchez confirmed that the RED mechanism will be extended until the end of 2026 and opened the door to “working jointly with the Valencian Generalitat” on financial support formulas for the battery assembly project. Both the President of the Government and the head of the Consell have buried their obvious differences and spoken of “a historic day” for Almussafes. Both valued the collaboration between administrations and, speaking for themselves, highlighted that the agreement demonstrates the capacity of Spain and the Valencian Community to attract large investments.
The AVIA automotive cluster makes the Valencian automotive and mobility ecosystem available to the new company
The Automotive and Mobility Cluster of the Valencian Community has optimistically received the presentation of the joint plans of Ford and Geely, carried out this morning at the Almussafes factory. “This agreement and the manufacturing volume it implies with the announcement of the production of new SUV models, together with the manufacturing of the Kuga and the Bronco, allows suppliers to look to the future with greater confidence,” stated the president of AVIA, Francisco Segura.
As Segura expressed, “this new impetus for the Almussafes plant is an opportunity for the entire Valencian industry and is good news for the entire value chain of the sector. We cannot forget that, although suppliers have diversified sectors and clients, the pulling effect of the Almussafes factory is undeniable.” “We trust that Geely will bet on Valencian companies as its suppliers and, of course, that it will join the cluster.”
Read more The simultaneity of forest fires in Madrid makes extinction work difficult
