Ford’s Valencia Facility Considered for Potential Geely SUV Production

A rugged orange Geely Galaxy Battleship 700 off-road SUV parked in front of rocky mountains

Quick Read

  • Geely is evaluating the production of its Galaxy Battleship 700 SUV at the Ford plant in Almussafes, Spain.
  • The vehicle features a ladder-frame chassis, differing from the GEA architecture used for other planned models.
  • Ford and Geely’s joint venture, valued at €650 million, aims for 500,000 vehicles annually by end-2028.
  • Localizing production would help Geely mitigate EU anti-subsidy tariffs on Chinese-made electric vehicles.

Potential Shift in Production Strategy

Geely is currently evaluating the feasibility of manufacturing its latest off-road SUV, the Galaxy Battleship 700, at the Ford-owned plant in Almussafes, near Valencia, Spain, according to a report by Automotive News. This potential move comes just one day after the model opened for pre-orders in China, where it is marketed as the Zhanjian 700.

While neither Geely nor Ford has officially confirmed the production plans, the prospect of such an allocation highlights the strategic evolution of their joint venture. The plant, in which Ford holds a 66% stake and Geely 34%, is slated to begin operations in the first half of 2027, with a production target of 500,000 vehicles annually by the end of 2028.

Technical and Structural Challenges

The potential integration of the Battleship 700 into the Valencia facility presents significant technical hurdles. The vehicle utilizes a ladder-frame chassis, a design characteristic of traditional off-roaders like the Toyota Land Cruiser Prado, rather than the GEA new energy architecture currently planned for other Geely models at the plant. Incorporating this model would likely necessitate substantial investment in new tooling, as Ford does not currently produce body-on-frame vehicles at any of its European facilities.

Adding the Battleship 700 would increase the plant’s planned output complexity. Currently, the facility is designated to build the Ford Kuga, a Bronco-derived SUV, a new Ford-Geely co-developed multi-energy crossover, and two Geely models, including the EX5 (Galaxy E5). Should the Battleship 700 be approved, each partner would be responsible for two SUVs and one specialized off-roader.

Strategic Context

For Geely, localizing production within Europe serves as a hedge against the anti-subsidy duties imposed by the European Union on Chinese-manufactured electric vehicles. These tariffs, which can reach up to 35.3% in addition to standard import duties, create a significant financial incentive for Chinese automakers to establish manufacturing footprints within the bloc. With 225,350 vehicles registered in Europe during the first half of 2026, Geely has solidified its position as the largest Chinese-owned automotive presence in the region.

The joint venture was formally announced on July 23, 2026, with an investment valuation of €650 million. The partnership is designed to maintain distinct commercial identities for both brands, with no shared design, research, or brand management functions included in the current agreement.

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Contributor:Azat TV Editorial
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Publisher:Azat TV

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