Ford and Geely Auto Partner in Europe to Build Next-Generation Multi-Energy Vehicles in Spain
Ford and Geely Auto Form European Joint Venture to Produce Multi-Energy Vehicles in Spain
Ford Motor Company and Geely Automobile Holdings have unveiled plans to establish a new joint venture in Europe, combining their manufacturing expertise to produce a new generation of multi-energy passenger vehicles at Ford’s assembly plant in Valencia, Spain.
The partnership, which remains subject to regulatory approval, is expected to begin operations during the first half of 2027. Vehicle production under the new venture is scheduled to start in 2028, while Ford will continue building the popular Kuga SUV at the Valencia facility until then.
Under the proposed ownership structure, Ford will hold a 66% stake in the joint venture, with Geely Auto owning the remaining 34%.
The collaboration comes as Europe’s automotive sector undergoes significant transformation, driven by stricter emissions regulations, rising production costs and intensifying competition from global manufacturers. By sharing production capacity and manufacturing resources, the two companies aim to improve efficiency, reduce costs and strengthen their competitiveness while expanding consumer choice across multiple powertrain technologies.
Ford said the Valencia facility, which has been producing vehicles since 1976 and has an annual production capacity of around 500,000 units, will become a shared manufacturing hub focused on low- and zero-emission vehicles. The investment is also expected to support local employment and reinforce Spain’s position as a key automotive manufacturing centre in Europe.
Geely Auto described the venture as an important step in its European growth strategy. Company executives said the partnership reflects a commitment to developing vehicles specifically for European customers while supporting the region’s transition toward lower-carbon mobility.
Ford noted that its relationship with Geely spans more than a decade, dating back to Geely’s acquisition of Volvo Cars in 2010. The automaker said the new venture builds on years of mutual cooperation and a shared focus on manufacturing efficiency, product quality and flexible electrification strategies.
The companies plan to leverage their combined engineering and manufacturing expertise to develop a range of vehicles tailored to European market preferences. Ford’s production roadmap includes continued manufacturing of the Kuga plug-in hybrid, a new compact Bronco SUV and an all-new family crossover featuring multiple powertrain options. Geely, meanwhile, intends to build two electric SUVs at the Valencia plant as part of its expanding European lineup.
The announcement also supports Geely Auto’s broader international expansion following strong overseas sales growth, while advancing Ford’s strategy of using strategic partnerships to accelerate product development and improve manufacturing competitiveness in Europe.
Ford executives highlighted the collaboration as an example of how partnerships between automakers and government support can help strengthen Europe’s industrial base and prepare the region’s automotive sector for the next phase of the mobility transition.
