Ford Motor Company and Geely Automotive Holding Ltd. have officially announced a new joint venture based at Ford’s Valencia facility in Spain. The collaboration is designed to combine production resources for the development and manufacturing of a wide range of energy-efficient vehicles for both brands. Under the agreed ownership split, Ford will retain 66% of the entity, while Geely Auto will hold the remaining 34%.

This initiative aims to accelerate Ford’s product expansion in Europe and simultaneously advance Geely’s localization strategy across the continent. Subject to regulatory clearance, the joint venture is expected to commence operations in the first half of 2027, with the first new model rolling off the assembly line in 2028.

A manufacturing powerhouse
The Valencia plant, recognized as one of Europe’s largest and most advanced automotive facilities with an annual production capacity of roughly 500,000 vehicles, will act as the shared manufacturing hub. By converting the site into a collaborative center, both companies anticipate improved capacity utilization, increased product development efficiency, and reduced overall costs. This move is also projected to strengthen the local Spanish economy by generating additional jobs within the automotive sector.

Executives from both sides.

The product roadmap
The joint venture will continue the existing production of the Ford Kuga while broadening the portfolio with several launches scheduled for 2028:

  • The Bronco family expansion: A new, rugged compact SUV will be added to the Ford Bronco lineup.
  • Co-Developed Crossover: A brand-new Ford crossover will be introduced. Ford will lead the design, but the vehicle will be jointly developed with Geely.
  • Geely’s European push: Starting in 2028, Geely will produce two new energy vehicles at the plant. This includes the EX2, known as the Geely Xingyuan in the Chinese market, which is a top-selling model.

This partnership arrives during a period of international growth for Geely. In the first half of 2026, Geely Automotive reported overseas sales of 474,000 units, reflecting a year-on-year increase of 158%.