Ford Motor and Chinese automaker Geely announced a new manufacturing joint venture that will produce electric vehicles at Ford’s plant in Valencia, Spain. The venture, pending regulatory approvals, is expected to commence operations in the first half of 2027, with vehicle production beginning in 2028. Ford will hold a 66% stake in the joint venture, while Geely will own 34%.
The facility will initially continue producing the Ford Kuga while preparing for the transition to electric vehicle manufacturing. The planned product lineup includes a new electric crossover for Ford, an additional model from the Bronco family, and two electric sport utility vehicles from Geely. All new vehicles are scheduled to begin production in 2028.
The partnership reflects broader industry trends as established automakers seek to enhance their competitiveness in the European market. Both companies cited the need to address intense global competition, cost pressures, and increasingly stringent regulatory requirements. The joint venture aims to establish production at competitive cost levels consistent with industry standards.
The collaboration represents an expansion of partnerships between legacy automakers and Chinese companies beyond their traditional geographic scope. Similar arrangements have been pursued by other major manufacturers, including Stellantis, which has been expanding its relationship with Leapmotor into Europe, and Volkswagen, which has indicated willingness to share underutilized European factories with Chinese automotive brands.
Ford and Geely’s relationship extends back to 2010, when Ford sold Volvo Cars to Geely. Ford CEO Jim Farley has previously expressed openness to partnerships that leverage Chinese automakers’ capabilities in product development and manufacturing efficiency to support the company’s global operations.
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