China's Geely Holding approved to acquire stake in Ford's Spanish plant
China's market regulator has unconditionally approved Geely Holding's acquisition of a 34% stake in Ford Motor Espana S.L.U. The deal paves the way for the establishment of its first European production facility.
Geely Holding, the Chinese automotive conglomerate, has received unconditional approval from China's State Administration for Market Regulation to acquire a 34% stake in Ford Motor Espana S.L.U. This regulatory clearance marks a significant step towards establishing the company's first manufacturing base in Europe.
The acquisition is part of a joint venture agreement with Ford Motor Company, announced in July. The collaboration aims to establish a joint venture at Ford's Valencia plant in Spain. This partnership will focus on sharing production capacity and developing new energy vehicles for both the Ford and Geely brands targeting the European market.
The joint venture is expected to commence operations in the first half of 2027, following the regulatory approval. Production of the first new model is scheduled to roll off the assembly line in 2028. The Valencia plant, with an annual capacity of approximately 500,000 vehicles, will serve as a shared advanced manufacturing hub. The goal is to enhance capacity utilization, accelerate product development, and reduce costs, while also creating employment opportunities within the Spanish automotive sector.
Under current plans, the plant will continue producing the Ford Kuga model. It is also slated to manufacture a new member of the Ford Bronco family, a rugged compact SUV, and a new Ford-branded crossover model by 2028. This facility represents Geely's first production plant in Europe, and the initial SUV planned for production is the EX5, which has already been introduced in Europe (equivalent to the Galaxy E5 in China).