Ford Motor Company and Chinese automaker Geely Auto revealed plans on Thursday to establish a joint venture for manufacturing low- and zero-emission vehicles at Ford’s manufacturing facility in Valencia, Spain. The partnership, which requires regulatory approval, will be structured with Ford holding a two-thirds ownership stake and Geely holding one-third. Geely also owns automotive brands including Volvo and Polestar.
The collaboration aims to address competitive pressures facing Ford in the European market, including intense global competition and stringent regulatory requirements. The two companies plan to jointly develop and produce five vehicle models, including Ford’s continued production of the Kuga plug-in hybrid and a new Bronco SUV, with Bronco production scheduled to begin in 2028. Geely will manufacture two electric SUVs at the facility, with the first model expected to launch in 2028. Additionally, the partners will jointly develop a new multi-energy crossover vehicle also slated for 2028 market entry.
Ford’s European sales have declined significantly over the past decade, falling from more than one million vehicles annually to under 500,000 in recent years. The Valencia plant, which has annual capacity of 500,000 vehicles, produced fewer than 100,000 vehicles in 2025. The joint venture allows both companies to share development costs and production expenses while addressing market demands.
The partnership reflects broader industry trends as traditional automakers increasingly collaborate to manage the capital-intensive transition to electrification. Chinese automakers have gained market share globally by producing high-quality electric vehicles and hybrid models at competitive price points, supported by government incentives. While these companies face a slowdown in their domestic Chinese market, they have expanded successfully in other Asian markets, Latin America, and parts of Europe. Industry analysts suggest the arrangement provides cost efficiencies and allows Ford to avoid bearing full development costs for new platforms designed specifically for European consumers.
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