China’s Geely and Ford Motor have announced a joint venture to manufacture electric vehicles (EVs) at Ford’s Valencia plant in Spain. Subject to regulatory approval, the new operation is planned to start in the first half of 2027, with production of the first vehicles beginning in 2028. Meanwhile, the plant will continue producing the Ford Kuga model. Ford will hold a 66% ownership stake in the venture, while Geely will own 34%.

The joint venture aims to produce several new models, including an electric crossover for Ford, a new member of the Bronco family, and two electric SUVs under the Geely brand. This initiative reflects the changing dynamics in the European automotive market, with increased competition, rising cost pressures, and stricter regulations influencing manufacturing strategies. The partnership will reset the Valencia facility to a new cost benchmark in the industry.

This deal builds on a long-standing relationship between the two companies, dating back to when Ford sold Volvo Cars to Geely in 2010. The collaboration signifies a shift for legacy automakers like Ford, which have traditionally partnered with Chinese firms mainly in China but are now expanding these ties into Europe to stay competitive against rapidly growing Chinese automakers entering new markets.

Ford CEO Jim Farley, who recognizes the innovation and speed of Chinese car manufacturers, supports partnerships like this to bolster Ford’s global operations. Geely’s vice president Alex Nan emphasized that the joint venture is focused on delivering high-quality, feature-rich vehicles tailored for European customers while actively contributing to the continent’s greener future.