Ford and Geely Form Joint Venture in Spain for Vehicle Production
Ford and Geely are establishing a joint venture at Ford's Valencia, Spain plant to produce next-generation multi-energy vehicles for the European market. Production is slated to begin in 2028.
Ford Motor Company and Geely Automobile Holdings have announced plans to form a European joint venture centered at Ford's manufacturing facility in Valencia, Spain. The new entity aims to produce multi-energy vehicles for both the Ford and Geely brands in Europe.
The joint venture is expected to commence operations in the first half of 2027, with the first vehicles projected to roll off the assembly line in 2028. Planned models include a new crossover for Ford and two electric SUVs from Geely. Production of the Ford Kuga will continue without interruption.
The move comes as the automotive industry faces intense global competition, cost pressures, and evolving regulations in Europe. By combining production volumes, the partners aim to maximize the Valencia plant's capacity, reduce manufacturing costs per vehicle, and meet emerging industry cost standards.
The collaboration builds on a prior relationship, following Ford's sale of Volvo Cars to Geely in 2010. Both companies highlight shared commitments to quality and cost-efficient sourcing. The venture is expected to accelerate Geely's European expansion and support Ford's plan to introduce five new passenger vehicles in Europe by 2029.