Ford spent decades building a plant in Spain. Now they're handing the keys to Geely so a Chinese automaker can build EVs there instead. Joint venture is the term they used. Sublet is more accurate.
The deal kicks off in early 2027. First cars roll out in 2028. Ford gets to keep some employees on payroll and pretend they're still in the game. Geely gets a European manufacturing footprint without the hassle of permitting or dealing with Spanish regulators. Everyone wins except the people who thought Ford was going to figure out how to make electric cars people actually want to buy.
Retail traders saw this headline and immediately checked if $F was up or down. It moved 0.3% because nobody cares. Then they googled what Geely even is. Turned out it's the parent company of Volvo and Polestar and about six other brands Ford will be competing against using Ford's own factory. Brilliant stuff.
The technical setup here is flawless. Two companies that can't sell enough EVs on their own have decided to combine their incompetence under one roof. Margins will be tight. Overcapacity will be spectacular. By 2029 they'll be offering zero-percent financing on cars that depreciate faster than your Robinhood account during a rate hike.
Some analyst at Morgan Stanley will publish a note calling this "a strategic realignment in the face of market headwinds." Translation: Ford gave up. They're renting out the factory to someone who might know what they're doing while they focus on selling F-150s to people who think climate change is a hoax.
Your neighbor who bought Ford at $25 because it was "undervalued" is still holding at $11 and calling this news bullish.
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