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Written by Han Zihan Edited | Qingzhu
A Prime Minister, plus three cabinet ministers, standing behind an investment by a Chinese automaker. Amid the EU adding layer upon layer of measures to Chinese electric vehicles, it itself conveys a signal.
On July 23, at the Geely Valencia factory, in the presence of Prime Minister Pedro Sánchez, Geely Automobile and Ford signed a joint venture agreement to create new energy vehicles for Geely and Ford brands for the European market through capacity sharing.
Not buying a factory, but a joint venture; not defeating others, but win-win cooperation.
Whether bringing in or going out, Geely's internationalization has always implemented Chairman Li Shufu's words: "Business is beautiful, doing business and making friends at the same time".
Time rewind to 16 years ago. On March 28, 2010, Geely Holding Group signed the final 100% equity acquisition agreement for Volvo Cars Group with Ford Motor Company. Geely became the first multinational corporation in the Chinese automotive industry. Ford witnessed and supported this cooperation case with global automotive industry influence, forging commercial friendship with Geely.
Today, 16 years later, Geely and Ford shake hands again. For the current explosive growth of Chinese cars going overseas, this has strong implications.
2026, the overseas expansion of China's automotive industry is undergoing a key leap from quantitative change to qualitative change.
In the first half of the year, China's vehicle export volume reached 5.096 million, up 65.3% year-on-year. June's single-month exports broke the 1 million vehicle threshold for the first time. For every 10 vehicles produced domestically, nearly 4 head to overseas docks.
Consulting firm AlixPartners predicts that China's annual vehicle export volume is expected to reach 10 million, becoming the first country globally to break this number.
Behind the numbers, deeper changes are occurring.
In June, the market share of major Chinese brands in Europe was 13%, surpassing Japanese brands for two consecutive months. When we occupy a larger share of the EU market, we cannot just sell cars simply, we must achieve harmonious win-win with the local industrial ecosystem, laws and regulations, and social well-being.
The joint venture between Geely Automobile and Ford to establish a company in Spain happens to stand at this node of qualitative change. It is also another practice of Li Shufu from "going out" to "integrating in".
A Prime Minister's Endorsement, and Two Handshakes Spanning 16 Years
On July 23, the day of the signing ceremony. Spanish Prime Minister Pedro Sánchez appeared at the Almussafes factory in Valencia, followed by three ministers from the Ministry of Labor and Economy, Ministry of Industry and Tourism, and Ministry of Science, as well as the President of the Valencian Community.
The Almussafes factory was built in 1976, and was once Ford's largest production base outside the United States, with cumulative production of over 11 million vehicles to date. For nearly 50 years, this factory has been the livelihood for tens of thousands of families in the Valencia region of Spain.
But the industrial era never stops for sentiment. Starting from 2024, with the promotion of EU industry and electrification, Ford gradually ceased production of multiple fuel models such as Mondeo, S-MAX, Galaxy, leaving only one production line producing the Kuga in the huge factory.
Last year, the factory with an annual capacity of 500,000 vehicles actually produced less than 100,000 vehicles, with utilization rate less than one-quarter. The factory that once fed thousands of Spanish families is facing a crossroads of fate.
Geely's arrival could not have been more timely. Through capacity sharing, it not only brings jobs, capacity, and tax revenue to the locality, but also allows Ford to activate remaining assets in a more efficient way, continuing to generate value.
According to the plan, the joint venture company will officially commence operations in the first half of 2027.
In the new factory, Geely will launch two new energy vehicle models, and Ford will also produce three multi-energy vehicle models, including continuing to produce the Kuga, and launching an all-new rugged compact SUV of the Bronco family in 2028.
The five models will share capacity and coordinate production scheduling. Both sides stated in the announcement that the joint venture will "promote more model choices and value enhancement", and through "integrating output to reduce per-vehicle costs". For the local economy, jobs are preserved, and an industrial lifeline of a region is reactivated, which can be called a win-win on multiple fronts.
Currently, Spain is becoming a strategic pivot for Chinese automakers landing in Europe. Labor costs are about one-third of Germany's, energy costs are lower than Germany and France, possessing world-class port clusters, and Barcelona is the core gateway for Chinese cars entering Europe.
In Q1 2026, Chinese brands sold approximately 38,700 vehicles in Spain, up 67% year-on-year.
Jian Jiayue, CEO of Geely Automobile Group, said a passage: Automakers going overseas will face many issues, from the overseas perspective, Chinese brands are there to "conquer" other people's markets, so the "going out" of Chinese automotive brands is actually to "walk in". Walking into the local market. Building factories in joint venture locally, mobilizing local resources, is a path of multi-win.
For Geely, although it seems like taking a small loss, cannot enjoy profits exclusively. But it actually avoided many hidden costs and efficiency frictions.
The EU has always been a high threshold market, with high compliance costs, high environmental protection requirements, long approval processes, influence of local voter opinions and political factions, which will make business behavior complicated. Specific cases can refer to the drama-like twists and turns of Tesla's German factory.
Actually, now there are already domestic automakers who suffered the same loss. Fighting alone, one-sidedly emphasizing ambition and sales targets, instead resulted in much hostility and obstruction, even becoming a chip in local political party games.
But the other path Geely took, preserving jobs in overseas markets, activating assets for old car companies, taking root for Chinese brands locally, letting technology flow become a constructive force, by "win-win cooperation, beauty shared" making oneself a welcomed partner.
Seeking Strategic Depth, Prioritizing Synergy
Citi estimates that if Geely obtains the 150,000 vehicle annual production quota in the Valencia factory, the cost is only equivalent to 10%-20% of building a new greenfield factory.
Beyond cost advantage, the more critical value lies in time. From signing to production, the joint venture model requires only 18 months, while self-built factories usually take three to five years. In the rapidly changing European electric vehicle market, an 18-month time difference is enough to determine whether a brand can lock in position.
Geely has already validated this strategy in many markets globally.
In Malaysia, in 2017, Geely acquired 49.9% stake in Proton and fully dominated operations. Let Proton walk out of the quagmire of losses, achieving brand revitalization.
In January 2026, Proton's exclusive EV factory at Tanjung Malim Automotive High-Tech Valley officially started production, and the first pure electric model eMas7 started CKD local assembly. The eMas7 is built on the Geely Galaxy E5 platform, ranking champion in Malaysia EV sales for consecutive months.
Until today, from Malaysia's political circles to the public, they still regard Proton as "their own brand". What Geely does is not replacing, but making it better.
In Korea, Geely cooperated with Renault to launch intelligent hybrid models. In Brazil, Geely acquired 26.4% stake in Renault Brazil, sharing factory capacity and market network.
In Europe, Volvo Cars is fully responsible for Lynk & Co's commercial and brand operations in the European region, assisting Lynk & Co brand's regional expansion in Europe.
This is exactly Geely's unique logic of global layout — not advancing alone, but weaving an ecological synergy network. Every cooperation node is both a strategic pivot to enter local markets, and proof of long-term trust from partners. Making globalization a value network of multi-win cooperation and continuous deepening.
So, although "from product exports to system exports" has become industry consensus, what exactly is the system? Moving your own system forcefully there, or building a system from scratch, or integrating into the local system? These operational details reflect a company's business values and development outlook.
Geely's Spain joint venture and the logic behind this system provide a good sample and idea for the Chinese automotive industry, and reflect as substantial growth data.
In the first half of 2026, Geely's overseas sales reached 474,000, up 158% year-on-year, already exceeding the total export volume of the full year 2025. Based on the first half performance, Geely has upped the full year export target to 900,000 vehicles.
Conclusion: From "Student" to "Partner", the Metamorphosis and Responsibility of Chinese Automakers
In early 2010, Geely and Ford signed an agreement in Gothenburg, Sweden, to acquire the globally renowned Swedish luxury brand Volvo for 1.8 billion US dollars, and the media used "snake swallowing an elephant" to describe this transaction.
Geely fulfilled all commitments with action, did not intervene in Volvo's independent operations, protected and respected its existing development systems, letting Volvo achieve brand revitalization in the following decade plus.
More importantly, Geely also learned Volvo's systematic R&D capabilities, safety-first manufacturing standards and quality control. This transaction allowed Geely to complete an "advanced study", laying the capability foundation for active performance on the global stage later.
Traditional automakers hold existing capacity, channels, and sales teams, while Chinese automakers hold the advantages and cost efficiency of the fastest growing new energy system, both sides found what both parties need in this stage.
As Ford Europe President Jim Baumback said: "Geely's world-class electrification capabilities, speed, and massive global scale, combined with Ford, are unparalleled competitive advantages."
From the humble "student" in 2010 to the equal "partner" in 2026, Geely exchanged pragmatism for trust, won respect with capability, and integrated into global industry development in the best way.
Geely's globalization has never been a simple capital game, but constantly exploring open and win-win global industry cooperation models under the premise of legality and compliance, it is respect for brands and technology, layout and deep construction of synergy systems.
From Volvo to Proton, Lotus, then Mercedes-Benz, Renault, and Ford, Geely's built global system synergy not only activated new momentum for Geely's global development, but also formed a solid guarantee to help brand going overseas. This also confirms what Li Shufu said, "Business is the most equal and beautiful manifestation of human civilization."
