Ford Motor Company and Geely Automobile Holdings have announced a manufacturing joint venture at Ford's Valencia plant in Spain, with Ford holding 66% and Geely 34%. The JV will produce Ford and Geely branded multi-energy passenger vehicles, with the first new models scheduled for 2028, marking a significant breakthrough for Chinese automotive brands in European localized manufacturing.
Cooperation Framework: Valencia Plant's Transformation
On July 23, 2026, Ford and Geely announced an agreement to form a Europe-focused manufacturing joint venture at Ford's Valencia, Spain manufacturing hub. This nearly 50-year-old facility has an annual capacity of approximately 500,000 units, making it one of Europe's most advanced and productive automotive plants.
The JV ownership structure:
- Ford: 66% stake
- Geely: 34% stake
Core objectives of the JV:
- Improve factory utilization and reduce manufacturing costs
- Strengthen the long-term future of the Valencia facility
- Address intensifying competitive pressures in the European automotive sector
Ford of Europe President Jim Baumbick stated: "For nearly 50 years, Valencia has built some of the most-loved cars in our history. Now this team will help build our future alongside a capable partner in Geely Auto."
Product Planning: Multi-Energy Portfolio Covers All Scenarios
The JV's product matrix is divided across two brand lines, both scheduled to begin production in 2028:
Ford brand lineup:
- Ford Kuga: Existing production continues uninterrupted
- New Bronco family member: A new rugged compact SUV
- All-new multi-energy crossover: Ford-led design, jointly developed with Geely
Geely brand lineup:
- Two new electric SUVs: Including the EX2 (known as Geely Xingyuan in China)
- Built on Geely's Global Intelligent New Energy Architecture
| Brand | Model | Powertrain | Production |
|---|---|---|---|
| Ford | Kuga | Multi-energy | Ongoing |
| Ford | New Bronco member | Multi-energy | 2028 |
| Ford | New crossover | Multi-energy | 2028 |
| Geely | EX2 / Xingyuan | Battery electric | 2028 |
| Geely | Second electric SUV | Battery electric | 2028 |
Strategic Win-Win: Ford's Product Offensive and Geely's European Expansion
For Ford, this partnership is critical support for its European product offensive. Ford plans to introduce five new passenger vehicles to European showrooms by 2029. By sharing capacity with Geely, Ford can:
- Fully utilize world-class plant facilities and workforce
- Match the industry's emerging cost benchmarks
- Accelerate product launch timelines
For Geely, this represents an important milestone in global expansion. In H1 2026, Geely's overseas sales reached 474,228 units, up 158% year-on-year, making it one of the world's fastest-growing Chinese automotive brands.
Geely Auto Group VP Alex Nan said: "This JV with Ford in Europe reflects our commitment to open, collaborative product development. We are dedicated to delivering vehicles that European customers will choose on merit."
Industry Significance: A New Benchmark for China-Europe Manufacturing Cooperation
The Ford-Geely partnership is built on a foundation of trust stretching back to 2010, when Ford sold Volvo Cars to Geely.
This collaboration reflects common challenges facing the global automotive industry:
- Tightening regulations: European carbon emission standards becoming stricter
- High operating costs: Persistent manufacturing cost pressures in Europe
- Intense global competition: Chinese brands redefining industry cost benchmarks
| Partnership | Chinese OEM | Partner | Location | Timeline |
|---|---|---|---|---|
| Ford-Geely JV | Geely | Ford | Valencia, Spain | Operations H1 2027 |
| Stellantis-Leapmotor | Leapmotor | Stellantis | Poland | Launched |
| Xpeng-Magna | Xpeng | Magna Steyr | Austria | 2026 |
For dealers and importers in Central Asia and Russia, this cooperation sends a clear signal: Chinese automakers are accelerating globalization through open collaboration. For more information, visit EX1000.COM.
