Ford and Geely Form Joint Venture in Spain for Vehicle Production

Ford Motor Company and Geely Automobile Holdings have announced an agreement to establish a Europe-focused joint venture at Ford's manufacturing hub in Valencia, Spain. The new entity aims to combine scale and factory utilization to produce vehicles for both Ford and Geely brands, targeting the European market.

The joint venture is expected to commence operations in the first half of 2027, pending regulatory approvals, with the first vehicles slated to roll off the production line in 2028. The Valencia plant will manufacture a new generation of low- and zero-emission vehicles, including an all-new multi-energy crossover for Ford and two all-electric SUVs for Geely. Production of the current Ford Kuga will continue uninterrupted.

This collaboration is designed to address the competitive realities of the European automotive market, characterized by intense global competition, cost pressures, and evolving regulations. By pooling resources, Ford and Geely aim to optimize capacity, reduce manufacturing costs, and establish a competitive cost benchmark while delivering advanced vehicles.

The Valencia facility, operational since 1976, will be transformed into a shared, high-tech manufacturing hub. Under the proposed structure, Ford will hold a 66% stake in the joint venture, with Geely Auto owning 34%. This partnership is intended to secure the plant's future, provide long-term stability, and potentially create new jobs in advanced manufacturing.

The agreement builds on a history of collaboration between the two companies, notably Geely's acquisition of Volvo Cars from Ford in 2010. Both manufacturers share a commitment to product quality and efficiency, and to offering consumers choices as the industry transitions toward new energy sources.