Ford and Geely Join Forces in Europe to Produce Next-Generation Multi-Energy Vehicles in Spain

On July 23, 2026, Ford Motor Company and China’s Geely Automobile Holdings (Geely Auto) announced an agreement to establish a Europe-focused joint venture at Ford’s manufacturing facility in Valencia, Spain. The partnership will manufacture Ford and Geely multi-energy passenger vehicles for European customers, creating a larger production base designed to compete in one of the world’s most challenging automotive markets.

Europe’s automotive industry is undergoing rapid transformation as manufacturers face stricter emissions regulations, rising operating costs, and increasing competition from new global automakers. These pressures have changed expectations around vehicle manufacturing costs, technology capabilities, and software-driven customer experiences.

By combining production volumes, Ford and Geely aim to maximize the capacity of the Valencia plant, reduce manufacturing costs, and create a more competitive production model for the European market. The companies believe the partnership will allow them to deliver advanced multi-energy vehicles while supporting economic growth and employment in the Valencia region.

Subject to regulatory approvals, the joint venture is expected to begin operations during the first half of 2027, with the first vehicles scheduled to leave the production line in 2028. Ford will continue manufacturing the Ford Kuga at the Valencia facility during the transition period.

The partnership builds on a relationship between Ford and Geely that dates back to 2010, when Ford sold Volvo Cars to Geely. Ford has pointed to Geely’s efforts to strengthen and expand Volvo as an example of the companies’ shared commitment to quality, efficient sourcing, continuous improvement, and customer choice during the global shift toward electrification.

“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.”

“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.”

Valencia Plant to Become Low-Carbon Mobility Manufacturing Hub

The joint venture will transform Ford’s Valencia facility into a shared, high-tech manufacturing center designed to compete with the industry’s evolving global cost standards. The plant, which has a potential annual production capacity of approximately 500,000 vehicles, has been one of Europe’s most advanced automotive manufacturing sites since opening in 1976.

Valencia was the first manufacturing location established in Spain by a non-Spanish automaker and became the birthplace of the original Ford Fiesta, Ford’s first global front-wheel-drive vehicle and one of the company’s most successful models.

Under the proposed ownership structure, Ford will hold a 66% stake in the joint venture, while Geely Auto will own 34%.

Ford and Geely Vehicle Plans

The partnership will combine the engineering, manufacturing, and product development expertise of both companies to produce low-emission and zero-emission passenger vehicles tailored specifically for European drivers. The vehicles will offer a range of powertrain choices, including electrified options, along with advanced digital features.

Ford Vehicles

Ford Kuga: Production of the Ford Kuga, one of Europe’s most popular plug-in hybrid models, will continue at the Valencia plant without interruption.

New Compact Bronco SUV: Valencia will begin producing a new member of Ford’s global Bronco family in 2028. The rugged, compact SUV will be designed for European roads and positioned as an adventure-focused vehicle.

All-New Multi-Energy Crossover: Ford and Geely will jointly develop a new family crossover scheduled for launch in 2028. The vehicle will feature Ford’s engineering approach and driving dynamics as part of Ford’s plan to introduce five new multi-energy vehicles in Europe by 2029.

Geely Vehicles

Geely Auto plans to manufacture two electric SUVs at the Valencia facility as part of its European expansion strategy. The first Geely-branded vehicles produced through the joint venture are expected to enter production in 2028.

The partnership also supports Geely Auto’s global growth strategy following overseas sales of 474,228 vehicles during the first half of the year. For Ford, the agreement represents another step in its approach of using strategic partnerships to improve speed, efficiency, and scale while competing in Europe’s increasingly competitive automotive market.

Together, Ford and Geely aim to create a flexible manufacturing platform capable of producing the next generation of electric, hybrid, and low-emission vehicles while strengthening Europe’s automotive supply chain.