Ford Motor Company and Geely Automobile Holdings plan to form a manufacturing joint venture at Ford’s Valencia, Spain, plant, with Ford holding 66% of the new entity and Geely Auto the remaining 34%. The companies announced the agreement this week, positioning the plant to build a shared lineup of Ford and Geely multi-energy passenger vehicles for European drivers. Pending regulatory approvals, the joint venture is expected to begin operating in the first half of 2027, with the first new vehicles rolling off the line in 2028. The Ford Kuga will remain in production at Valencia in the meantime, the companies said.
Highlights
- Ford will hold 66% of the new joint venture, with Geely Auto holding the remaining 34%
- Operations are targeted to begin in the first half of 2027, pending regulatory approval, with new vehicle production starting in 2028
- Valencia has a potential annual capacity of about 500,000 vehicles, according to Ford
- The plant’s future lineup includes a new Bronco-family SUV, an all-new multi-energy crossover, and two Geely-branded electric SUVs
A 66-34 Split for a Shared Factory
Under the proposed ownership structure, Ford retains majority control of the joint venture while Geely Auto becomes a minority partner in the Valencia plant. According to Ford, the arrangement lets the two automakers pool production volume, spreading fixed costs across a larger combined output as the companies compete against tightening European emissions regulation and a new wave of global rivals.
The deal marks a shift from Ford’s earlier approach to Valencia. In 2022, Ford selected the plant as its preferred site for a next-generation EV architecture, a plan that did not advance to production before this week’s joint venture announcement superseded it.
Valencia opened in 1976, when it built the original Ford Fiesta — the company’s first global front-wheel-drive car — and Ford says it was the first non-Spanish automaker to manufacture in the city.
What’s Coming Off the Line
- Ford Kuga: Production continues uninterrupted; Ford describes it as one of Europe’s most popular plug-in hybrids
- New Bronco-family SUV: A compact, off-road-oriented model joins Valencia’s lineup, with production starting in 2028
- All-new multi-energy crossover: Jointly developed by Ford and Geely, arriving in 2028 as part of Ford’s plan to bring five new multi-energy vehicles to European showrooms by 2029
- Two Geely-branded electric SUVs: The first Geely models built under the joint venture, also scheduled for 2028
Executives Frame the Deal as Built on Trust
“This JV with Ford in Europe reflects our commitment to open, collaborative product development as part of our growth strategy, deepening our local presence and commitment to customers in Europe,” said Alex Nan, Vice President of Geely Auto Group. “We are dedicated to delivering vehicles that European customers will choose on merit: on industry leading features, on high-quality and on actively contributing to Europe’s green future. Put simply: we are building cars in Europe, for Europe, alongside a trusted partner.”
“For nearly 50 years, Valencia has built some of the most-loved cars in our history, and now this team will help build our future,” said Jim Baumbick, President, Ford of Europe. “That’s why we’re building a flexible, cost-effective industrial system with a capable partner in Geely Auto. Together we can fully utilize a best-in-class plant with a great workforce and match the industry’s new cost benchmark. This is all part of Ford’s vision to give European drivers rally-bred handling, true off-road capability and multi-energy technology, with a distinct Blue Oval DNA.”
A Relationship Rooted in the Volvo Sale
Ford points to its history with Geely as the foundation for the new venture, dating to 2010 when Ford sold Volvo Cars to the Chinese automaker. Geely has since expanded aggressively across Europe, building on an EV lineup that now includes right-hand-drive models sold in the UK. Geely Auto reported overseas sales of 474,228 vehicles in the first half of the year, a figure the company says supports its broader international expansion strategy.
“This partnership shows how automakers are strengthening Europe’s industrial base, but we can’t do it alone,” Baumbick said. “What we’ve achieved in Valencia, with the ongoing support of Spain’s national and regional governments, is a masterclass in public-private partnership that sets the benchmark for the rest of Europe.”
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