--- title: "BofAS: GEELY AUTO Acquisition of Ford's Spanish Plant Marks Key Step in Europe Localization Strategy" type: "News" locale: "en" url: "https://longbridge.com/en/news/293696532.md" description: "BofAS reports Geely Auto plans to acquire a 34% stake in Ford's Spanish plant for EUR221 million, forming a joint venture for contract manufacturing. This move supports Geely's Europe localization strategy by leveraging existing facilities, reducing capital investment compared to new builds, and enhancing long-term global competitiveness. The broker maintains a Buy rating with a HKD29.3 target price, citing strong export growth and earnings potential." datetime: "2026-07-24T03:29:35.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293696532.md) - [en](https://longbridge.com/en/news/293696532.md) - [zh-HK](https://longbridge.com/zh-HK/news/293696532.md) --- # BofAS: GEELY AUTO Acquisition of Ford's Spanish Plant Marks Key Step in Europe Localization Strategy BofAS issued a report saying that GEELY AUTO (00175.HK) +0.460 (+2.484%) Short selling $128.68M; Ratio 26.866% plans to acquire a 34% stake in Ford's Spanish plant for EUR221 million and establish a joint venture with Ford to conduct contract manufacturing of passenger vehicles at Ford's plant in Valencia, Spain. Upon completion of the transaction, the investment will be accounted for as an associate rather than consolidated into GEELY AUTO's financial statements. As of 31 December 2025, Ford Spain's net asset value amounted to EUR1.85 billion. GEELY AUTO's acquisition price is equivalent to 0.35x Ford Spain's 2025 P/B. GEELY AUTO expects the plant to begin production of Geely vehicles in 2028, as time is needed to install new equipment for electric vehicle production. The broker believes the potential acquisition is an important step in GEELY AUTO's Europe localization strategy. The plant can provide GEELY AUTO with a ready-made production platform to support future manufacturing of Geely models in Europe, including mature production facilities, labor resources and supply chain networks. Compared with building a new factory from scratch, it can also significantly reduce upfront capital investment. Although the transaction will have limited short-term impact on earnings, in the long run it will strengthen GEELY AUTO's global manufacturing footprint and enhance its competitiveness in overseas markets. The broker reiterated its Buy rating on GEELY AUTO, mainly based on strong export growth and higher earnings growth, which support solid revenue growth and proactive operating expense reductions. The TP is HKD29.3. (ha/a)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-23 16:25.) ### Related Stocks - [GELHY.US](https://longbridge.com/en/quote/GELHY.US.md) - [GELYY.US](https://longbridge.com/en/quote/GELYY.US.md) - [F-C.US](https://longbridge.com/en/quote/F-C.US.md) - [00175.HK](https://longbridge.com/en/quote/00175.HK.md) - [F-D.US](https://longbridge.com/en/quote/F-D.US.md) - [F-B.US](https://longbridge.com/en/quote/F-B.US.md) - [F.US](https://longbridge.com/en/quote/F.US.md) - [80175.HK](https://longbridge.com/en/quote/80175.HK.md) ## Related News & Research - [Geely Auto reshuffles top management to advance One Geely strategy](https://longbridge.com/en/news/296082851.md) - [Geely Auto lifts export goal to 920,000 as overseas becomes only growth engine](https://longbridge.com/en/news/296116470.md) - [Geely’s Li Shufu hands over reins to younger generation for ‘healthy’ growth](https://longbridge.com/en/news/296183029.md) - [Geely’s Core Profit Jumps as Revenue Climbs but Reported Earnings Ease in H1 2026](https://longbridge.com/en/news/296054847.md) - [Geely Automobile Clarifies Board and Committee Structure to Bolster Governance](https://longbridge.com/en/news/296152935.md)