Ford will form a strategic partnership with Chinese automaker Geely for its Valencia plant, where the two companies are to produce electric vehicles. The Chinese group will acquire a 34-percent stake in the Spanish factory, while Ford will retain 66 percent of the capital in the joint venture. teraz.sk ↗
The new company is to integrate the Valencia plant along with its employees. According to the published information, the partners will produce five models at the plant. For Ford, this is a step at a time when its European business has not managed to see a significant revival and the American automaker is looking for a way to cut costs and strengthen its position in electromobility. Die Zeit ↗
Geely, which is the parent company of the Volvo brand, thereby gains a direct manufacturing base in Europe. Production in Valencia could help it circumvent the European Union's protective tariffs on Chinese electric vehicles while also expanding its sales opportunities beyond its home market. The Chinese group is thus further advancing into the European automotive market. Tagesspiegel ↗
The partnership also shows the pressure traditional manufacturers in Europe are under. Just ten years ago, Ford was the fourth-largest automaker in Europe, with sales of more than a million vehicles. Further developments will depend on how quickly the companies manage to launch joint production and whether the new models can improve both companies' position in the electric vehicle market. El Mundo ↗
Ford to sell Geely a stake in the Valencia plant
This summary was generated by artificial intelligence. It may contain inaccuracies. Please verify information in the original sources below.
Sources (5)
Autobauer Geely drängt nach Europa: Ford verkauft Teil von Spanien-Werk an chinesischen Rivalen
Tagesspiegel
| 08:30 23.07.
Kooperation: Ford verbündet sich mit chinesischer Volvo-Mutter Geely
Die Zeit
| 13:07 23.07.
Čínska firma Geely bude spolu s Fordom vyrábať elektromobily
teraz.sk
| 12:50 23.07.
Kooperation: Ford verbündet sich mit chinesischer Volvo-Mutter Geely
Tagesspiegel
| 11:51 23.07.
Ford verkauft Teil des Spanien-Werks an Rivalen aus China
Spiegel.de
| 07:10 23.07.
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