Ford and Geely Form Strategic European EV Venture
Ford and Geely have announced a new manufacturing joint venture that will produce electric and multi-energy vehicles at Ford’s Valencia plant in Spain. The agreement marks one of the largest collaborations between a Western automaker and a Chinese vehicle manufacturer in Europe. Moreover, the partnership aims to improve factory utilization, reduce production costs, and strengthen both companies’ competitiveness in the region.
The venture remains subject to regulatory approval and is expected to begin operations in 2027. Ford will hold a 66% stake, while Geely will own the remaining 34%. Production of the new vehicle lineup is scheduled to start in 2028.
Five New Models Planned for Valencia
Under the agreement, the Valencia facility will manufacture five vehicles. Ford will continue producing the Kuga plug-in hybrid and will introduce a new Bronco SUV. Meanwhile, Geely will build two electric SUVs for the European market. In addition, both companies will jointly develop a new crossover available with multiple powertrain options.
The partnership allows Ford to share development costs while expanding its European product portfolio. At the same time, Geely gains its first manufacturing base in Europe, helping the company strengthen its regional presence and respond to evolving local production requirements. Furthermore, Ford confirmed that employees at the Valencia plant will transition to the new joint venture, with staffing expected to increase as production expands.
Strategic Move Amid Industry Transformation
The agreement reflects a broader shift across the automotive industry as manufacturers seek partnerships to manage rising development costs and accelerate electrification. Additionally, European automakers continue to face growing competition from Chinese brands that offer advanced electric vehicles at competitive prices.
Ford views the collaboration as an opportunity to revive its European manufacturing operations and maximize the capacity of its Valencia plant. Likewise, Geely sees the venture as a strategic gateway into European production while expanding its electric vehicle footprint. As the automotive industry evolves, the partnership highlights how global manufacturers are combining resources to improve efficiency, support innovation, and compete in an increasingly demanding market.
