Ford revitalizes its Valencian plant with an alliance with the Chinese Geely

ValenciaBreath of fresh air for the Valencian Ford plant, which has guaranteed its short-term continuity: thanks to an agreement with the Chinese automotive company Geely, they will create a joint venture and share ownership of the factory.

The agreement will allow the Almussafes facilities to increase production from a single model – as is currently the case – the Kuga, to five. Three new ones will be added by the end of 2028 and another already planned by the oval brand, the Bronco, which will begin production in the autumn. The alliance will also allow for an increase in staff, although the exact number is unknown.

The announcement was made this Thursday at the Valencian plant by the president of Ford Europe, Jim Baumbick, and the vice president of Geely, Victor Young. In their appearance, the executives detailed that the American automotive company will be the majority partner with 60% of the shares, compared to 40% for the Asian company. They also explained that the three new models will be two SUVs from Geely and one crossover Ford's multi-energy. "One team, two brands, and five products," the representatives of both companies have repeated, emphasizing that the goal is to maximize the use of the Almussafes facilities.

For the Valencian economy, the most important consequence of the agreement should be the increase in a workforce that currently has 4,142 employees, a small figure, given that a few years ago it was over 7,000. "More workers will undoubtedly be needed," highlighted Baumbick, who also assured that they cannot yet share the figures for the increase in operators.

What has been specified is that both new hires and current employees will become part of the new company. In the same vein, Victor Young has committed to investing "in local talent". "We are not bringing labor from China, we only depend on local experience and labor from Valencia," he emphasized.

In response to journalists' questions, the president of Ford Europe clarified that the oval brand's products will be "uniquely designed and differentiated from Geely's." He also explained that the ownership of the land at the Valencian factory will be shared. In this regard, he argued that "it's not about letting Chinese cars in," because "they are already here competing," and warned that they will now be able to "play on equal terms on a level playing field."

For his part, Geely's vice president detailed that their goal is for Almussafes to manufacture "between a third and half of the brand's sales in Europe" within a five-year period.

"An announcement as important as that of 1976"

As expected, the agreement has been celebrated by the Valencian and state administrations, which were present at the announcement. The president of the Spanish government, Pedro Sánchez, attended, defining the alliance as "inspiring". The socialist leader also recalled that in 2024 the State approved for the Valencian plant the first RED mechanism of an autonomous scope with an investment of 45 million euros. Furthermore, he explained that the mechanism will be extended until the end of 2026, both for Ford and for its main suppliers. "Thanks to it [the program foresees the application of temporary employment files that became popular during the coronavirus pandemic] employment has been protected, training has been facilitated for 4,000 workers, and adaptation to new production processes has been accompanied," Sánchez boasted.

For his part, the president of the Generalitat, Juanfran Pérez Llorca, highlighted the significance of the announcement and stated that it is "on par" with the 1976 agreement for the creation of the factory. The conservative politician also congratulated himself on putting an end to a period of "uncertainty and a bit of upheaval" in which the plant's continuity has been doubted.