Ford and Geely Plan European Manufacturing Joint Venture at Spain Plant

Ford and Geely have announced plans to establish a joint manufacturing company in Spain to produce new vehicles for the European market, expanding their cooperation in vehicle production and development.

Under the proposed arrangement, Ford will hold a 66% stake in the joint venture, while Geely will own the remaining 34%. The companies expect the venture to begin operations during the first half of 2027, pending regulatory approvals, with production of new models scheduled to start in 2028.

Valencia Plant to Produce New Models

The joint venture will be based at Ford’s manufacturing plant in Valencia, Spain, where the partners aim to improve factory utilization and reduce production costs by sharing manufacturing resources.

Ford said the Valencia facility has an annual production capacity of approximately 500,000 vehicles. During the transition to the new partnership, the company will continue producing the Ford Kuga at the plant.

Initially, the joint venture plans to manufacture four new vehicle models.

Ford intends to build a compact Bronco derivative alongside a new multi-energy crossover designed by Ford and jointly developed with Geely. The companies have not disclosed the crossover’s platform or powertrain options but said it will form part of Ford’s broader European strategy to introduce five new multi-energy vehicles by 2029.

Geely plans to manufacture two battery-electric SUVs at the Valencia plant beginning in 2028. Technical specifications and model details have not yet been announced.

Partnership Extends Beyond Manufacturing

In addition to sharing production facilities, Ford and Geely said they will collaborate on vehicle development, engineering and manufacturing, although the companies have not disclosed the scope of technology sharing between the two automakers.

Geely recently introduced its integrated “16-in-1” electric drive system, which combines multiple drivetrain components into a single unit and is scheduled to debut in the Geely Galaxy TT sedan. The companies have not indicated whether that technology will be incorporated into the vehicles planned for production in Spain.

Strategic Benefits for Both Companies

The joint venture supports each company’s strategic objectives in Europe.

For Ford, the collaboration is expected to improve utilization of existing manufacturing capacity while sharing development and production costs for future vehicle programs.

For Geely, the partnership provides access to an established European production facility and advances its strategy of localizing vehicle manufacturing for the region. The company has recently expanded its European presence, including the launch of the battery-electric E5 SUV and the Starray EM-i plug-in hybrid in Germany.

The agreement also builds on an existing relationship between the companies. Ford sold Volvo Cars to Geely in 2010, but the proposed Valencia venture represents a broader industrial partnership focused on future vehicle development and manufacturing.

If approved, the project will mark the beginning of Geely’s European production of battery-electric vehicles and further strengthen local manufacturing capacity for both automakers from 2028 onward.