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China's Geely to make electric SUVs at Ford Spain plant, jointly develop model for Europe

The venture will produce four models and could reach 500,000 vehicles a year, as Ford and Geely seek lower costs and more European output.

  • On Thursday, Ford Motor and China automaker Geely announced a manufacturing joint venture at the Valencia, Spain plant, with Ford holding 66 percent stake and Geely the remaining 34 percent, pending regulatory approvals to begin operations in first half of 2027.
  • Chinese carmakers have rapidly expanded into new markets outside China, prompting legacy automakers like Ford to pursue partnerships, while manufacturers are drawn to Europe's electric vehicle market and seek to avoid tariffs by producing inside the EU.
  • The Valencia site, which assembled fewer than 100,000 vehicles in 2025 at record-low output per UGT Ford trade union, will produce new Ford Bronco, two Geely electric SUVs, and a jointly developed multi-energy crossover from 2028, with capacity potentially reaching around 500,000 vehicles annually.
  • Spanish Prime Minister Pedro Sánchez welcomed the agreement at the factory, stating that "betting on the added-value supply chain in our country, in Europe, is fundamental and a priority for the Spanish government," while Ford Europe President Jim Baumbick pledged to use the plant at maximum capacity.
  • The announcement follows a May deal where Stellantis handed its Madrid plant to Chinese partner Leapmotor, and comes as a U.S. Senate committee toughened restrictions on Chinese automakers, underscoring Ford CEO Jim Farley's strategic pivot toward partnerships amid sector transformation.
Insights by Ground AI

237 Articles

Lean Right

For years the Ford factory in Valencia has seen the volume of vehicles produced drop. Today it is limited to Kuga, so it decided to give part of that factory to Chinese Geely, to produce the E2.

·Lisboa, Portugal
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Lean Right

Buying a new car, in 2026, means answering a question that until a few years ago almost did not arise: stay on the gasoline or switch to the electrified? The European Union fixed at 2035 the stop to the sale of cars with the sole thermal motor. The cities tighten on the areas with limited traffic. And who chooses now has to deal with the purchase price and, above all, with how much it costs to move every day. Geely arrives at this step from a de…

·Rome, Italy
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Lean Left

Ford and Geely Auto are planning to establish a joint venture to produce Ford and Geely branded vehicles at Ford's factory in Valencia, Spain. The aim of the collaboration is to scale up production and make more efficient use of the factory's capacity.

·Istanbul, Türkiye
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Valencia Plaza broke the news on Tuesday, July 21, 2026.
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