Geely Auto and Ford Motor have agreed to establish a joint venture at Ford’s Valencia plant in Spain to produce multi-energy vehicles for the European market. Subject to regulatory approvals, the new entity is expected to begin operations in the first half of 2027, with the first vehicles rolling off the assembly line in 2028. Under the proposed ownership structure, Ford will hold a 66 percent stake while Geely Auto will own 34 percent.
Ford’s Valencia facility, one of the largest and most advanced automotive plants in Europe, has an annual production capacity of approximately 500,000 units. Industry reports indicate the plant is currently operating at less than 25 percent of its capacity. The partnership with Geely is anticipated to improve utilization rates, secure local employment and optimize the site’s output.
Under the joint venture, the plant will manufacture three Ford-branded multi-energy models: the existing Kuga crossover, a new compact SUV from the Bronco family slated to enter production in 2028, and an all-new crossover developed collaboratively by Ford and Geely. Geely Auto will introduce two new energy vehicle models, with the first, the EX5 (marketed in China as the Galaxy E5), scheduled for production in 2028. This will mark Geely’s inaugural production facility in Europe.
Conversations between the two automakers began earlier this year, with initial discussions reported in February and further details emerging in May. Geely has indicated plans to leverage its Global Intelligent New Energy Architecture (GEA) platform for one of the planned models. Localizing production in Europe will enable Geely to avoid tariffs on imported electric vehicles and reduce shipping costs, while demonstrating a long-term commitment to the European market.
Geely’s export business has been a key growth driver, with overseas sales reaching 474,228 units in the first half of 2026, a 158 percent increase year-on-year. The two companies’ collaboration dates back to 2010, when Geely acquired Volvo Cars from Ford. Both parties have emphasized the strategic importance of the venture: Geely sees it as a milestone in its global expansion, and Ford highlights the opportunity to maximize an underused facility with a skilled workforce.
The agreement also aligns with broader efforts by Spanish authorities to strengthen the country’s role in European automotive manufacturing. Another Chinese automaker has already revived a former Nissan plant in Barcelona in partnership with a local brand.
Source: CNEV Post
