Geely Wins China Approval For 34% Stake In Ford Spanish Unit
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✧ GENERATE BRIEFING
China’s State Administration for Market Regulation (SAMR) has granted unconditional clearance for Geely Automobile Holdings to acquire a 34% equity stake in Ford España, S.L. for €221 million ($252 million). Under the agreement first announced in July 2026, Ford will retain a controlling 66% majority stake as the two global automakers operationalize a manufacturing joint venture at Ford's Almussafes facility in Valencia, Spain. Key transaction parameters, production roadmap, and strategic implications include: Production Schedule & Model Rollout: The joint venture will operate as a contract manufacturer, beginning operations in H1 2027 and starting vehicle assemblies in 2028. The plant will produce two Geely-branded electric SUVs (led by the Geely EX5) alongside multi-energy Ford-branded vehicles, while continuing production of the Ford Kuga during the transition. Tariff Mitigation & EU Expansion: For Geely, local assembly in Valencia provides an operational footprint inside the European Union, bypassing the 18.8% countervailing tariff imposed on battery-electric vehicles imported directly from China.
China’s market regulator has granted unconditional approval for Chinese automaker Geely to acquire a 34% stake in Ford Motor’s Spanish subsidiary, Ford España, clearing a regulatory hurdle for the companies’ planned partnership to manufacture electric vehicles in Spain.
The agreement, announced in July 2026, will establish a joint venture in which Ford will retain a 66% majority stake, while Geely will own the remaining 34%. The partnership is intended to expand vehicle production at Ford’s Valencia factory and improve the facility’s utilisation.
Model Pipeline and Multi-Energy Powertrains
Under the arrangement, Geely plans to manufacture two electric SUVs at the Spanish plant. The first is expected to be the Geely EX5, with production scheduled to begin in 2028. The second SUV is also part of the companies’ plan to expand their electric-vehicle presence in Europe.
The two automakers also plan to jointly develop a new crossover model for the European market. The vehicle is expected to offer several powertrain options, including fully electric, plug-in hybrid and extended-range electric configurations.
EU Localization Strategy and Plant Efficiency
For Geely, the partnership offers an opportunity to establish a stronger manufacturing presence in Europe as Chinese automakers seek to expand overseas production and adapt to potential European Union local-content requirements. Manufacturing vehicles within the region could help the company compete more effectively in the European market.
Ford, meanwhile, is seeking to make better use of its Valencia facility, which has operated below its production capacity. Bringing Geely models into the plant could increase manufacturing volumes, improve cost efficiency and support the longer-term viability of the factory.
Political Scrutiny and Regulatory Milestones
The partnership has also attracted attention in the United States, where some policymakers have criticised cooperation between Western automakers and Chinese manufacturers. Ford has defended the arrangement as a response to intensifying competition and changing conditions in the European automotive industry.
The Chinese regulator’s unconditional approval removes one regulatory obstacle to the transaction. The companies’ broader plans will now depend on implementing the joint venture, preparing production facilities and bringing the planned models to market.
