Ford and Geely Partner to Manufacture EVs in Spain

Ford has finalized a four-year labor agreement at its Valencia plant in Spain, paving the way for Chinese automaker Geely to start manufacturing electric vehicles (EVs) within the European Union. The deal, known as the "2030 Agreement," was negotiated between Ford and the UGT union, which represents most of the plant’s 4,150 workers. The agreement, set to begin on January 1, 2027, and end in 2030, ensures workforce stability during the transition. However, the minority union, STM Intersindical, declined to support the deal due to disagreements over mandatory weekend shifts.

The partnership between Ford and Geely Auto, announced in July 2026, aims to share production capacity at the Valencia facility. Starting in 2028, the plant will assemble up to five new vehicles, three for Ford and two for Geely, targeting the European market. This collaboration allows Geely to enter the EU market more efficiently by leveraging Ford’s existing infrastructure.

The labor agreement includes inflation protections and salary caps to balance workers' purchasing power with the alliance's cost requirements. From 2027, wage increases will be tied to Spain’s Consumer Price Index (CPI) plus 1.5%, guaranteeing a minimum 3% raise and a maximum 5%. From 2028 to 2030, raises will match CPI plus 1%, with a floor of 2.5% and the same 5% ceiling. Over four years, workers are guaranteed at least a 10.5% wage increase, capped at 20%. The contract also includes a retroactive review clause if inflation exceeds the 5% cap.

To support the launch of new vehicle lines, the factory will operate with increased flexibility, including up to eight mandatory working Saturdays per year. Workers will receive flexibility bonuses for these shifts and temporary launch bonuses of 5% to 6% of their annual salary during intense retooling phases. Additionally, the company’s annual employee bonus will rise from €600 to €1,000, becoming part of base salaries starting in 2029.