Ford and Geely have announced plans to establish a new manufacturing joint venture in Europe, marking one of the most significant automotive partnerships in recent years.
The agreement will see the two automakers collaborate at Ford’s Valencia manufacturing plant in Spain, producing a new generation of electric, hybrid, and other multi-energy passenger vehicles tailored for European customers.
The partnership reflects the growing pressure on automakers to reduce production costs while meeting stricter emissions regulations and competing with an increasing number of global brands entering the European market.
Pending regulatory approval, the joint venture is expected to begin operations during the first half of 2027, with the first vehicles rolling off the production lines in 2028.
Valencia Becomes a Shared Manufacturing Hub
Ford’s Valencia facility has been a cornerstone of the company’s European operations since opening in 1976. Over the decades, the factory has produced millions of vehicles, including the original Ford Fiesta, and today remains one of Ford’s most advanced manufacturing sites.
The new joint venture aims to maximize the plant’s production capacity, which can reach approximately 500,000 vehicles annually. By sharing manufacturing resources, Ford and Geely expect to reduce production costs while improving efficiency and competitiveness.
Under the agreement, Ford will hold a 66% stake in the venture, while Geely will own the remaining 34%.
The collaboration also reinforces Valencia’s long-term future as a major automotive manufacturing center while supporting employment and investment in Spain.
A Multi-Energy Strategy for European Drivers
Unlike partnerships focused exclusively on battery-electric vehicles, Ford and Geely plan to manufacture a broad range of low- and zero-emission models. Their strategy acknowledges that European consumers continue to demand multiple powertrain options as the transition toward full electrification progresses.
The companies say the new vehicles will combine advanced manufacturing, modern software, and competitive pricing while being specifically developed for European driving conditions and customer expectations.
Ford’s Upcoming Models
Ford already builds the popular Ford Kuga in Valencia, and production of the plug-in hybrid SUV will continue without interruption.
Beginning in 2028, the plant will also produce two all-new Ford models:
– A compact member of the Bronco family designed specifically for European buyers, offering rugged SUV capability in a smaller package.
– A new family-oriented multi-energy crossover jointly developed with Geely. The model forms part of Ford’s broader plan to introduce five new multi-energy vehicles across Europe by 2029.
Ford says the new lineup will continue emphasizing the brand’s well-known driving dynamics while expanding customer choice across different powertrain technologies.
Geely Expands European Production
For Geely, the partnership represents another step in its growing international expansion strategy.
The Chinese automaker plans to manufacture two all-electric SUVs at the Valencia plant, with production scheduled to begin in 2028. Building vehicles in Europe will allow Geely to strengthen its local presence while offering products specifically designed for European consumers.
The move follows strong overseas momentum for the company, which has continued expanding its international sales footprint across multiple global markets.
Partnership Built on Long-Term Cooperation
Although this is the first manufacturing joint venture between the two companies, Ford and Geely already share a long business history.
Their relationship dates back to 2010, when Geely acquired Volvo Cars from Ford. Since then, Volvo has undergone a successful transformation under Geely’s ownership, helping establish confidence between the two manufacturers.
That history has laid the foundation for deeper collaboration in engineering, sourcing, manufacturing efficiency, and future vehicle development.
Strengthening Europe’s Automotive Industry
Beyond launching new models, the venture is intended to improve the competitiveness of European vehicle production. Rising manufacturing costs, increasingly demanding emissions regulations, and intense competition from both established and emerging automakers have forced manufacturers to rethink traditional production strategies.
By combining engineering expertise, manufacturing scale, and shared investment, Ford and Geely aim to create a cost-efficient production model capable of delivering competitive electric and hybrid vehicles while maintaining high quality standards.
If regulatory approvals proceed as planned, the first vehicles from the new joint venture will arrive in 2028, making Valencia one of Europe’s key production hubs for Ford and Geely’s next generation of electrified passenger vehicles.
