Ford, Geely form Europe-focused JV in Spain – Chinadaily.com.cn
Ford, Geely form Europe-focused JV in Spain
Ford and Geely announced an agreement on Thursday to establish a Europe-focused joint venture at Ford’s Valencia manufacturing hub in Spain, as the two automakers seek to strengthen production efficiency and compete in a rapidly changing European automotive market.
Under the proposed ownership structure, Ford will hold a 66 percent stake in the new entity, while Geely Auto will own 34 percent.
The venture will manufacture Ford and Geely multi-energy passenger vehicles for the European market, including low- and zero-emission models.
Pending regulatory approvals, the joint venture is expected to begin operations in the first half of 2027, with the first vehicles scheduled to roll off the production line in 2028.
The partnership comes as European automakers face mounting pressure from tighter emissions regulations, rising manufacturing costs and increasing competition from global electric vehicle makers.
“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 building cars in Europe, for Europe, alongside a trusted partner,” Nan said.
The Valencia plant, which opened in 1976, is one of Ford’s major manufacturing facilities in Europe, with a potential annual production capacity of about 500,000 vehicles.
The factory has produced several important Ford models, including the original Fiesta, and currently manufactures the Kuga SUV.
The joint venture will transform the Valencia facility into a shared high-tech manufacturing hub focused on low-carbon mobility, combining Ford’s manufacturing expertise with Geely’s electrification capabilities.
“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 of Ford Europe.
The partnership will bring a new generation of vehicles to the plant.
Ford will produce a new multi-energy crossover jointly developed with Geely, as well as a new compact member of the Bronco SUV family, with production scheduled to begin in 2028. Meanwhile, Kuga production will continue uninterrupted.
Geely plans to manufacture two electric SUVs at the Valencia facility, with the first Geely-branded models under the joint venture scheduled to enter production in 2028.
The cooperation builds on a relationship between the two companies dating back to 2010, when Ford sold Volvo Cars to Geely. Since then, Geely has expanded Volvo’s global business while maintaining the brand’s premium positioning.
For Geely, the partnership supports its global expansion strategy. The Chinese automaker recorded overseas sales of 474,228 vehicles in the first half of this year, according to the company.
For Ford, the venture reflects its broader strategy of using partnerships to improve competitiveness through greater speed, efficiency and scale in global markets.
“This partnership shows how automakers are strengthening Europe’s industrial base,” Baumbick said, adding that cooperation with governments and industry partners would be important to maintaining manufacturing competitiveness in the region.
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