Ford Motor and Chinese automaker Geely announced a manufacturing joint venture Thursday that will produce electric vehicles at Ford’s existing plant in Valencia, Spain. The partnership is expected to commence operations in the first half of 2027, pending regulatory approval, with the first vehicles anticipated to enter production in 2028.
Under the agreement, Ford will hold a 66% ownership stake while Geely maintains 34%. The Valencia facility will continue manufacturing the Ford Kuga during the transition period. The joint venture is slated to produce multiple vehicle models, including a new electric crossover for Ford, an additional Bronco family member, and two electric Geely SUVs.
The collaboration reflects broader industry trends as traditional automakers seek to compete with Chinese manufacturers that have aggressively expanded into international markets. The companies characterized the venture as responsive to European market conditions, including competitive pressures, cost constraints, and regulatory demands. A company statement noted the partnership aims to establish the Valencia plant as a competitive manufacturing hub aligned with industry cost benchmarks.
Similar strategic alliances have emerged across the sector, with Stellantis deepening its partnership with Chinese brand Leapmotor in Europe, and Volkswagen signaling openness to sharing underutilized European factories with Chinese automakers. Ford CEO Jim Farley has previously expressed admiration for Chinese manufacturers’ operational efficiency and product development capabilities, indicating the company’s willingness to pursue international collaborations.
The companies noted their relationship dates to 2010, when Ford sold Volvo Cars to Geely. A Geely executive stated the partnership aims to deliver vehicles that appeal to European consumers through quality, innovation, and environmental contributions.
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