Ford Motor Co. in Dearborn announced today that it’s forming a joint venture with Spanish automaker Geely Automobile Holdings to produce multi-energy passenger vehicles for the European market at Ford’s manufacturing hub in Valencia, Spain.
Under the proposed ownership structure, Ford will own 66 percent of the new entity and Geely Auto 34 percent.
Pending regulatory approvals, the joint venture will begin operations in the first half of 2027, with the first new vehicles scheduled to roll off the line in 2028. The Valencia plant will continue to produce the Ford Kuga in the meantime.
By pooling production volume, Ford and Geely say they expect to maximize the capacity of the Valencia plant, lower the cost of every vehicle built there, and compete at a lower while delivering world-class multi-energy vehicles and strengthening the local Valencia economy in the process.
“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,” says 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.”
Ford says its partnership with Geely is built on “a foundation of trust and respect stretching back to 2010 when Ford sold Volvo Cars to Geely and watched it protect and revitalize the brand.” Both companies say they share a commitment to quality, cost-efficient sourcing, and continuous improvement, as well as a belief that customers should be able to choose their own path through the energy transition.
“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,” says 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.”
The joint venture is expected to transform Ford’s Valencia facility — already one of Europe’s most productive and advanced plants, according to Ford, with a potential annual capacity of about 500,000 vehicles — into a shared, high-tech manufacturing hub built to compete at the industry’s new global cost standard.
The plant opened in 1976 to build the original Ford Fiesta, Ford’s first global front-wheel-drive car. Ford was the first non-Spanish automaker to build in Valencia.
The joint venture is designed to combine the engineering, manufacturing, and development know-how of two of the world’s leading automakers to build both Ford and Geely low- and zero-emission passenger vehicles. The cars will be tailored for European drivers and will offer them choice in powertrain technology, as well as outstanding digital experiences.
Vehicle production in Valencia will include:
- The Ford Kuga.
- A new Bronco starting in 2028.
- An all-new crossover, designed by Ford and jointly developed with Geely, will arrive in 2028.
- Two electric Geely SUVs, scheduled to roll off the production line in 2028.
“This partnership shows how automakers are strengthening Europe’s industrial base, but we can’t do it alone,” says Baumbick. “What we’ve achieved in Valencia, with the ongoing support of Spain’s national and regional governments, is a masterclass in public-private partnership that sets the benchmark for the rest of Europe.”
