Ford Motor Company and Geely Auto plan to establish a manufacturing joint venture in Spain that will produce next-generation multi-energy vehicles for the European market, increasing factory utilisation and supporting long-term manufacturing capacity.
Ford Motor Company and Geely Auto have announced plans to establish a Europe-focused manufacturing joint venture at Ford’s Valencia plant in Spain, bringing together the two automakers to produce low- and zero-emission passenger vehicles for the European market.
Subject to regulatory approval, the joint venture is expected to begin operations during the first half of 2027, with production of new vehicle programmes scheduled to start in 2028.
The companies said the collaboration is designed to improve factory utilisation, reduce manufacturing costs and strengthen the long-term future of the Valencia facility while responding to increasing competitive pressures across the European automotive sector.
Under the proposed ownership structure, Ford will hold a 66 per cent stake in the joint venture, while Geely Auto will own the remaining 34 per cent.
By combining production volumes, the companies aim to maximise the capacity of the Valencia plant, which has a potential annual production capacity of approximately 500,000 vehicles.
Ford and Geely said the partnership addresses the challenges of tightening regulation, rising operating costs and increasing global competition by creating a manufacturing operation capable of meeting the industry’s emerging cost benchmarks.
Alex Nan, Vice President of Geely Auto Group, said: “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.
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.”
The Valencia facility will continue manufacturing the Ford Kuga while preparing for production of several new vehicle programmes.
From 2028, the site is expected to manufacture a new member of Ford’s Bronco family alongside an all-new multi-energy crossover jointly developed by Ford and Geely. The crossover forms part of Ford’s plan to introduce five new passenger vehicles to the European market by 2029.
Geely Auto also plans to produce two electric sport utility vehicles (SUVs) at the facility, supporting its continued expansion in Europe.
The companies said the new production programmes will combine their engineering, manufacturing and product development capabilities to deliver vehicles tailored to European customers with a choice of powertrain technologies and digital features.
Ford said the joint venture will transform the Valencia facility into a shared high-tech manufacturing hub designed to compete at the industry’s latest global cost standards.
The plant, which opened in 1976, has become one of Ford’s most advanced European manufacturing sites and has produced several of the company’s best-known passenger vehicles.
Jim Baumbick, President of Ford of Europe, said: “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. 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.”
The partnership supports Geely Auto’s international expansion while reinforcing Ford’s strategy of using manufacturing partnerships to improve speed, efficiency and scale within Europe.
Jim Baumbick added: “This partnership shows how automakers are strengthening Europe’s industrial base, but we can’t do it alone. 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.”
