Ford has sold one of its two production lines at the Valencia plant in Spain to Chinese automotive giant Geely for approximately €200 million, marking another strategic withdrawal by the American automaker from traditional European markets. The deal, finalized in late 2022, gives Geely immediate access to European manufacturing capacity for its Lynk & Co crossover brand while Ford continues operating alongside its new Chinese neighbor.
The sold production line at the Valencia facility can manufacture between 120,000 and 150,000 vehicles annually. Geely plans to use this capacity to build the Lynk & Co 02 crossover, a compact SUV that represents the brand's push into European markets. The timing aligns perfectly with Ford's decision to discontinue production of the Mondeo, S-Max, and Galaxy models by 2023, effectively clearing the way for Geely's operations.
Ford's Valencia plant employs approximately 6,200 workers across both production lines. The company has stated that no job losses are expected from the sale, with workers potentially transferring to Geely's operations or remaining with Ford's continuing activities at the site. This arrangement creates an unusual situation where two competing automakers will operate side by side at the same facility.
A Ford Europe spokesperson described the agreement as supporting "our Ford+ plan to build a thriving business in Europe" when the deal was announced in December 2022. However, the sale represents Ford's continued retreat from segments where it once competed directly with European rivals. The company has been systematically exiting the production of traditional family cars in favor of focusing on commercial vehicles, electric models, and crossovers.
Like this? Get the app: iOS | Android
Geely's acquisition of the Valencia production line forms part of a broader strategy to establish manufacturing presence across key global markets. The Chinese company, which owns Volvo Cars and has stakes in Mercedes-Benz parent Daimler, has been aggressively expanding its European footprint. The Lynk & Co brand represents Geely's attempt to create a premium offering that can compete with established European crossover manufacturers.
The Lynk & Co 02 crossover that will be produced in Valencia targets younger European buyers with connected car technology and subscription-based ownership models. Production is scheduled to begin in 2024, giving Geely time to adapt the manufacturing line and integrate its production systems. The model will compete in the increasingly crowded compact crossover segment against established players like the Volkswagen T-Cross and Peugeot 2008.
This deal reflects broader shifts in global automotive manufacturing, where Chinese companies are securing production capacity in key markets rather than relying solely on exports. Geely's approach mirrors strategies used by Japanese and Korean automakers in previous decades, establishing local production to avoid tariffs and better serve regional preferences.
The Valencia arrangement also highlights Ford's evolving European strategy. While the company retreats from some segments, it continues investing heavily in electric vehicle production and commercial vehicles. The decision to retain one production line at Valencia while selling the other suggests Ford views the Spanish facility as strategically important but no longer needs full capacity for its revised product lineup.
For Spanish workers and the regional economy, the deal provides stability during a period of significant automotive industry transition. Valencia has been a major automotive hub, and maintaining production levels through partnerships with Chinese manufacturers offers an alternative to plant closures that have affected other European facilities in recent years.
Sources: Ford Motor Company press releases, Geely Automobile Holdings announcements, automotive industry reports from December 2022
