Geley Plans New Off-Road SUV at Ford's Spanish Plant

Geely is reportedly evaluating the production of its new off-road sport utility vehicle at the Ford plant near Valencia, Spain. According to a report by Automotive News, the consideration came just one day after the model opened for pre-orders in China. Neither Geely nor Ford has officially confirmed the plan, but the move would add a distinct type of vehicle to the lineup currently planned for the facility.

The vehicle in question is the Galaxy Battleship 700, known in China as the Zhanjian 700. It is a plug-in hybrid featuring a tri-motor system that generates a combined 830 kilowatts, or roughly 1,113 horsepower. The car was revealed in July and is expected to enter European markets under a different name, with a confirmed UK launch scheduled for 2028. However, European type approval has not yet been announced, leaving the regulatory timeline uncertain.

Engineering Shift for the Plant

Building this model would represent a significant departure from current operations at the Almussafes plant. All vehicles Geely has previously confirmed for the site utilize its GEA new energy architecture. The Battleship 700, however, uses a ladder-frame chassis, a structural design typically found in rugged off-roaders like the Toyota Land Cruiser Prado rather than modern crossovers. This difference means the factory would need to install new tooling specifically for this frame, rather than simply allocating an existing production slot.

The complexity is heightened by Ford’s own plans. The American automaker intends to build a compact Bronco-family SUV at the same site starting in 2028. This vehicle will also be a boxy plug-in hybrid, though its specific chassis details for Europe remain unspecified. If the Battleship 700 joins the line, the plant would produce two standard SUVs and one dedicated off-roader, creating a diverse but operationally challenging mix for the partners.

Strategic Joint Venture Structure

This potential production shift fits within a broader joint venture announced in July. Ford holds a 66 percent stake, while Geely Auto owns 34 percent after paying €221 million for its share. The new entity is set to begin operations in the first half of 2027, absorbing all 4,142 existing workers at the plant. The company aims to reach a production target of 500,000 vehicles annually by the end of 2028.

The agreement strictly defines the scope of cooperation. It covers manufacturing but excludes joint sales, shared design, or joint brand management. Each partner retains its own commercial identity, and there is no provision for Geely to increase its ownership stake in the future. Jeff Jones, Ford’s global director of digital technology, has been named president of the venture, signaling Ford’s continued operational control over the enterprise.

Avoiding EU Import Duties

The primary financial driver behind building in Europe is the avoidance of high import tariffs. Brussels imposed anti-subsidy duties on Chinese-built electric vehicles in 2024, adding up to 35.3 percent on top of the standard 10 percent import duty. By manufacturing locally, Geely can bypass these costs, making its vehicles more price-competitive in the European market.

Geely is currently the largest Chinese-owned automotive group in Europe by volume, registering over 225,000 vehicles in the first half of 2026. This growth includes brands like Volvo, Polestar, and Lynk & Co. While the EX5 is the only Geely model currently confirmed for the Valencia plant, the addition of the Battleship 700 would further solidify the group’s manufacturing footprint in the region, mirroring moves by competitors like Chery, which is also building at a former Nissan plant in Barcelona.