The Chinese Geely enters to produce its cars in the Valencian plant of Ford, which has a surplus of 1,000 workers

China’s Geely has reached an agreement with Ford to produce vehicles at its factory in Almussafes, Spain, marking a pivotal moment for the struggling plant. The deal was set to be officially announced this Thursday by Jim Baumbick, president of Ford Europe, in the presence of Spanish Prime Minister Pedro Sánchez and regional leader Juanfran Pérez Llorca. The announcement aims to secure the future of the Valencian facility, which has faced declining production levels and ongoing layoffs. The agreement between Ford and Geely will allow the Chinese automaker to utilize Ford’s Almussafes plant for vehicle manufacturing. This collaboration comes amid concerns over the plant’s viability, as it has seen a steady decline in output. In 2025, the factory produced 98,591 vehicles, representing an 18.69% drop compared to 2024, when nearly 121,250 units were manufactured. These figures pale in comparison to the 420,000 vehicles produced in 2016, highlighting the long-term challenges facing the site. Currently, the Almussafes plant relies almost entirely on the production of the Kuga model, following the discontinuation of several other models in recent years. The delay of Ford’s new multi-energy Bronco vehicle, scheduled for release in 2028—has further compounded the uncertainty surrounding the plant’s operations. To address these issues, Ford has been actively pursuing partnerships, including with Geely, to ensure continued activity at the facility. Ford’s management has indicated that the announcement will focus on corporate developments related to its European operations. While specific terms of the agreement remain undisclosed, insiders familiar with the negotiations suggest that the partnership with Geely is central to the company’s strategy for revitalizing the Almussafes plant. The move could potentially lead to the integration of Geely’s production lines into the existing infrastructure, offering much-needed stability to the workforce currently affected by temporary layoff measures. The plant, which employs around 1,000 workers, benefits from a government-supported mechanism known as RED, allowing for the retention of staff until December 31. This measure provides a safety net during the transition period. However, Ford and labor unions are also engaged in discussions aimed at finalizing a new collective agreement by 2030. These talks seek to update the current contract regarding electric vehicle production, which was previously negotiated with the UGT union. The outcome of these negotiations could significantly influence the future direction of the plant. The potential collaboration with Geely represents a strategic shift for Ford, aligning with broader industry trends toward greater cooperation among automotive manufacturers. As the global auto sector continues to evolve, such alliances may become increasingly common, particularly in regions where traditional manufacturing hubs face economic pressures. For the workers at Almussafes, the agreement offers hope of sustained employment and renewed investment in the region’s industrial base. The coming weeks will likely see more clarity on how exactly Geely will integrate into the plant’s operations, setting the stage for a possible transformation in one of Spain’s key automotive centers.