China's Geely to establish first European production base in Spain, partnering with Ford for joint development

M&A · PartnershipIndustry Impact 4
โดย Reuters·Read original
Summary · why it matters

China's Geely Auto and US automaker Ford Motor have announced a business alliance in Europe, under which Geely will produce two electric SUV models at a Ford plant in Spain, and the two companies will jointly develop new vehicles. A joint venture, 66% owned by Ford and 33% by Geely, will be established in Spain, with shipments of Geely's electric SUVs expected to begin at the Valencia plant in 2028. They also plan to jointly develop a crossover SUV equipped with different powertrains, including full EVs, plug-in hybrids, and extended-range EVs, with production starting in 2028. The Valencia plant has an annual production capacity of around 500,000 units, but its utilization rate stood at only 26% as of 2025, and Ford's European chief has set a goal of running the facility at full capacity. This will be Geely's first production base in Europe, highlighting a clear trend of Chinese manufacturers leveraging underutilized plants of established players to comply with European local sourcing rules.

Impact on stocks 2

Electrification & Mobility▲ · 2 stocks
Geely Automobile Holdings Ltd
0175
▲ PositiveDemandrelevance

Geely establishes its first European production base, enabling local production to comply with EU sourcing rules and expanding market access.

Ford Motor Company
F
▲ PositiveDemandrelevance

Ford's underutilized Valencia plant will be used by Geely, improving capacity utilization and generating revenue from production and joint development.

Theme Impact 2

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