The Almussafes factory will be managed by a new joint venture resulting from the agreement between Ford and Chinese multinational Geely, formalized this Thursday. This alliance involves the partial sale and purchase of the assets that will be jointly managed.
According to the conditions communicated by Geely to the Hong Kong stock exchange, the Chinese company has acquired 34% of Ford Spain, the American multinational's Spanish subsidiary, for 221 million euros. This figure values the Almussafes factory at 650 million euros.
The transaction is carried out through the Spanish subsidiary, and Ford Motor Company will receive the 221 million euros through Ford Nederland, its Dutch parent company. Prior to the formalization, Ford will separate non-industrial activities, such as subsidiaries or sales departments, which will not be part of the alliance.
The new joint venture will assume all labor rights and obligations of the factory's workers. The contract does not include a future purchase agreement for Geely to increase its stake or acquire 100% of the factory.
The agreement includes purchase and sale options for exceptional circumstances, such as the cessation of activity by one of the parties, irresolvable disagreement, Geely's acquisition by a third party, or cases of insolvency or corruption scandals affecting reputation. These clauses aim to ensure the joint venture's operation in extraordinary situations.
Geely has defined the joint company as a 'contract manufacturing' entity, exclusively dedicated to contract manufacturing, without activities in product design, research and development, brand management, final sales, or distribution. These tasks will continue to be carried out separately by Ford and Geely for the models they commission.
In the initial years, the factory will introduce up to five models, three for Ford and two for Geely, with the aim of reaching half a million cars annually in the medium term. The stock exchange communication does not mention the possibility of manufacturing for third parties.
The partners also plan to provide financing to the joint venture through prorated loans, should external financing not be available or commercially viable.
