Geely Acquires Stake in Ford's Spanish Plant to Accelerate European EV Expansion

[Global Expansion] Geely has acquired a 34% stake in Ford's Spanish factory for EUR 221 million, pioneering a new asset-light entry model into the European market.

Core Development: Reverse Joint Venture Reshapes Sino-European Automotive Power Dynamics

Geely invested EUR 221 million (approximately RMB 17.65 billion) to establish a joint venture with Ford in Valencia, Spain, where Ford holds a 66% majority stake and retains operational control. The plant, originally built in 1976, has an annual production capacity of 400,000–500,000 vehicles and has cumulatively produced over 11 million cars. It is currently significantly underutilized due to Ford’s strategic retreat from internal combustion engine vehicles in Europe.

Strategic Rationale: Asset-Light Approach Replaces Capital-Intensive Greenfield Investment

This move marks a strategic shift among Chinese automakers—from building wholly owned factories abroad to leveraging shared manufacturing capacity. Concurrently, Håkan Samuelsson, CEO of Volvo, recently proactively invited Geely, Zeekr, and Lynk & Co to utilize Volvo’s European production facilities, establishing a dual-track strategy of “acquisition plus contract manufacturing” to accelerate the integration of Chinese brands into Europe’s manufacturing ecosystem at lower cost.

Industry Impact: China-Led Technology-for-Equity Model Emerges

The joint venture is expected to commence operations in the first half of 2027, with the first new vehicle rolling off the production line in 2028. This China-led “reverse joint venture” is quietly redefining traditional joint venture frameworks and reshaping the global automotive industry’s division of labor.