Geely Auto and Ford Establish Joint Venture in Spain for Localized Production in Ford’s Valencia Plant

Geely Automobile Holdings and Ford Motor Company have announced a strategic joint venture to establish a manufacturing hub at Ford's Valencia plant in Spain, focusing on the production of low- and zero-emission vehicles tailored for the European market. The deal, which involves an undisclosed investment amount, is expected to commence operations in the first half of 2027, with the first vehicles anticipated to roll off the production line in 2028. Under the ownership structure, Ford will retain a 66% stake in the new entity, while Geely will hold 34%.

This joint venture marks a significant collaboration between the two automotive giants, aiming to leverage Ford's established manufacturing capabilities and Geely's rapid expansion in the European market. The Valencia plant, recognized as one of Europe’s most advanced automotive facilities, has a potential annual production capacity of approximately 500,000 units. The partnership is expected to enhance operational efficiency by optimizing factory utilization and sharing development costs, thereby ensuring long-term stability and job creation in the region.

Geely Auto's recent performance underscores the strategic importance of this venture. The company reported a remarkable 158% year-on-year increase in overseas sales during the first half of 2026, solidifying its position as one of the fastest-growing Chinese automotive brands. This partnership with Ford is seen as a pivotal step in Geely's international expansion strategy, allowing it to introduce two new energy models specifically designed for the European market at the Valencia facility. The collaboration is built on a foundation of mutual respect, dating back to 2010 when Ford sold Volvo Cars to Geely, which has since revitalized the brand.

The joint venture is poised to produce a diverse lineup of vehicles, including three Ford-branded multi-energy vehicles and two electric models under the Geely brand. This initiative not only aligns with the increasing demand for sustainable transportation solutions in Europe but also supports both companies' commitments to innovation in electrification and advanced automotive technologies. The collaboration is expected to contribute positively to the local economy by creating high-tech manufacturing jobs and enhancing the skill set of the workforce in Valencia.

As the automotive industry continues to evolve, driven by the transition towards electrification and sustainability, this joint venture between Geely and Ford reflects broader market dynamics. It highlights the importance of strategic partnerships in navigating the complexities of the European automotive landscape. The collaboration is likely to set a precedent for future alliances, as automakers seek to optimize resources and accelerate their transition to low-emission vehicle production. Overall, this venture signifies a proactive approach to meeting consumer demands while reinforcing both companies' positions in the competitive automotive sector.