NEW YORK, July 24, 2026, 13:06 EDT – Shares in Ford NYSE:F gained after Geely set plans to address the 370,000-unit capacity shortfall at Ford’s Spanish plant.
- Ford shares rose 1.6% to $14.37 in early Friday trading.
- Geely Automobile Holdings Ltd. HKG:0175 is set to acquire a 34% stake in the venture for €221 million, while Ford will retain a 66% share.
- Ford’s implied idle capacity at Valencia represented roughly 87% of its projected European car sales for 2025.
Ford Motor Company’s deal with Geely fills a capacity gap of about 370,000 vehicles per year, an amount close to Ford’s total European passenger car volume last year.
Factory loading remains the main concern for investors, while the €221 million cash payment is of lesser importance.
Geely is set to purchase a 34% stake in Ford España’s manufacturing business. The transaction values the enterprise at €650 million, as agreed. Ford will retain a 66% ownership stake.
The venture is set to function primarily as a contract manufacturer. Each shareholder will continue to oversee product design, research, branding and distribution.
The Valencia facility is capable of building roughly 500,000 vehicles each year. However, during 2025, it operated at just 26% of its capacity, GlobalData data reported by Reuters shows. This suggests production was close to 130,000 vehicles.
| Valencia usage rate | Projected yearly output | Growth over 2025 figure |
|---|---|---|
| 26% in 2025 | 130,000 | — |
| 50% | 250,000 | 120,000 |
| 75% | 375,000 | 245,000 |
| 100% | 500,000 | 370,000 |
The figures shown are illustrative estimates, not official Ford projections. Increasing utilisation by 10 points could enable production of around 50,000 additional vehicles.
The proposed range will include five models. Ford is set to produce the Kuga, a Bronco, and a jointly designed crossover. Geely plans to manufacture two electric SUVs. Production is expected to begin in 2028.
“We have the ability to really load up the facility,” Ford Europe President Jim Baumbick said to Reuters. “That’s the goal.” Reuters
Ford’s European sales surpassed one million vehicles ten years ago. In 2025, deliveries declined to a little above 426,000, ranking Ford eighth. As a result, Geely’s models add volume that Ford may find difficult to recover on its own.
By 13:06 EDT, Ford shares traded at $14.37. The stock moved between $14.15 and $14.54, with approximately 39 million shares exchanged. U.S. markets stayed open.
Ford is set to announce its second-quarter earnings on Tuesday, with results scheduled for release at 4:05 p.m. EDT, followed by a conference call at 5 p.m. Analysts on Wall Street project operating profit of roughly $2.1 billion, Barron’s reported on Friday.
Ford posted adjusted EBIT of $3.5 billion in the first quarter, a number that factors in a one-off $1.3 billion tariff gain. The automaker’s full-year adjusted EBIT guidance remains at $8.5 billion to $10.5 billion.
U.S. sales in the second quarter declined by 10% to 549,200 vehicles. The drop was attributed to the discontinuation of certain models and a 69% decrease in daily-rental sales. Sales of the Bronco increased 15.9%, bolstered by strong demand for higher-margin SUVs.
Risks persist. The project still awaits regulatory approval and may need pro-rata loans from shareholders. Ford additionally recalled 565,691 Bronco vehicles following 15 reported fire cases. According to NHTSA, Ford was not aware of any accidents or injuries tied to these incidents.
Ford secures external output for a high-cost European facility through the Spain agreement. Most financial gains will begin in 2028. For now, Tuesday’s margin results and outlook will be the main share price drivers.
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