Ford sells Geely 34% of Spanish plant for €221M, drawing Washington rebuke
What's the deal? FordDealroom has a profile for this one. Try Dealroom → has agreed to sell Chinese automaker GeelyDealroom has a profile for this one. Try Dealroom → a 34% stake in its Spanish manufacturing business, Ford España, for €221 million ($252 million). Ford will retain 66% of the operation, according to a July 23, 2026 filing with the Hong Kong Stock Exchange.
What's the endgame? The companies plan to run Ford's Almussafes plant near Valencia — with capacity for about 500,000 vehicles a year — as a contract manufacturer for both automakers. The venture is expected to begin operating in the first half of 2027, pending regulatory approval, with the first new vehicles due in 2028.
What changes? The plant will build two Geely electric SUVs, an all-new Ford multi-energy crossover, and a new vehicle in Ford's Bronco family, while continuing to produce the Ford Kuga during the transition. The joint venture will not conduct vehicle design, research, branding, sales, or distribution.
The strategic rationale: Geely told investors the deal gives it immediate access to an established European platform, experienced workers, and an existing supply chain, cutting the capital and execution risks of building its own factory. Ford framed the venture as a way to raise plant use, lower costs, and compete at a "new global cost standard."
The EU angle: The arrangement lets Geely produce inside the European Union, sidestepping the 18.8% countervailing duty the European Commission imposed in 2024 on battery-electric vehicles imported from China. It remains unclear how those rules will apply to Geely cars assembled in Spain that use Chinese batteries or components.
What could go wrong? Rep. John Moolenaar (R-Mich.), chairman of the House Select Committee on the Chinese Communist Party, said Ford is "actively helping the Chinese Communist Party advance its ambitions to dominate global automotive supply chains." He called the decision "incomprehensible" and said Ford "should work with our nation's allies, not our adversaries."
The signal: Ford is trading a minority stake in a European asset for lower costs, while handing a Chinese rival an inside-the-EU manufacturing base — a move that hardens the political friction over China's auto expansion even as it eases Ford's own cost pressures.
Read more: The Epoch Times
Image credit: spencer_cooper
