24.07.2026 10:51
A collaboration step has been taken between US-based Ford and China's Geely Auto for joint production in Spain. Ford will own 66 percent of the new entity, while Geely Auto will own 34 percent.
Ford Motor Company of the US and Geely Automobile Holdings have announced an agreement to establish a European-focused business partnership at Ford's production center in Valencia, Spain.
According to a statement from the company, the planned joint venture will undertake the production of passenger vehicles with multi-energy technologies under both Ford and Geely brands for the European market.
The collaboration aims to create scale in production, utilize factory capacity more efficiently, and offer a stronger value proposition to the European market with more product options.
FIRST VEHICLES COMING IN 2028
Under the proposed partnership structure, Ford will hold 66% of the new entity, while Geely Auto will own 34%. After completing the necessary regulatory approval processes, the partnership is expected to commence operations in the first half of 2027, with the first new vehicles rolling off the production line in 2028. During this period, Ford Kuga production will continue uninterrupted at the Ford Valencia plant.
The collaboration, stated to be based on trust and principles of joint business operations, aims to secure the future of the Valencia plant, ensure long-term stability, and pave the way for new employment opportunities focused on high-tech production in the future.
It is noted that Ford and Geely aim to combine their production volumes to use the Valencia plant's capacity most efficiently, bring production costs of vehicles manufactured there to competitive levels, and compete within the industry's new cost standard. Meanwhile, they aim to offer vehicles with world-class multi-energy technologies while strengthening the Valencia economy.
NEW MODEL PORTFOLIO
As part of the joint venture, a completely new family crossover model with multi-energy technology, designed by Ford and developed with Geely, is expected to be produced in Valencia. The model, developed with Ford's signature capabilities and driving dynamics, is planned to launch in 2028.
A new member of the global Bronco family will also be produced at the plant. Production of this rugged, compact, adventure-ready SUV model, developed for European roads, is also expected to begin in 2028.
Production of the Ford Kuga, one of Europe's most preferred plug-in hybrid models, will continue uninterrupted.
Geely Auto plans to produce two electric SUVs at the Valencia plant to support its European focus and growth strategy. The first Geely-branded models produced under the joint venture are expected to roll off the production line in 2028.
The crossover model in question will be part of Ford's product offensive aiming to bring 5 new vehicles with multi-energy technologies to European "showrooms" by 2029. The vehicles, specially developed for European drivers, will offer different powertrain options as well as strong digital experiences.
"WE BUILD CARS IN EUROPE FOR EUROPE"
Jim Baumbick, President of Ford Europe, noted that Valencia has been home to some of the most beloved cars in Ford's history for nearly 50 years.
Baumbick highlighted that they are moving the established manufacturing strength into a new era shaping Ford's future in Europe and stated:
"This is why we are building a flexible, efficient, and cost-competitive industrial structure with a strong business partner like Geely Auto. Together, we can fully utilize the potential of one of the best-in-class facilities with a skilled workforce and compete at the industry's new cost standard. This step is part of Ford's vision to offer European drivers driving character from rally spirit, genuine off-road capability, and multi-energy technologies with Ford DNA."
Jim Baumbick also emphasized the importance of public-private partnership, stating: "This partnership demonstrates how automakers can develop new collaborations to strengthen Europe's industrial infrastructure. But we cannot achieve this alone. The model we are establishing in Valencia, with the ongoing support of Spain's national and regional governments, constitutes a strong public-private partnership that sets an example for the rest of Europe."
Alex Nan, Vice President of Geely Auto Group, stressed that the planned partnership with Ford in Europe underscores the importance they place on open and collaborative product development approaches as part of their growth strategy.
Nan emphasized that this step strengthens their local presence in Europe while further advancing their commitment to customers, stating, "We aim to produce vehicles that European customers will choose not only for the brand, but for their advanced features, high quality, and contribution to Europe's green future. In the simplest terms, we are building cars in Europe for Europe, together with a trusted business partner."