Ford and Geely are deepening their cooperation in Europe through a new joint venture centered on Ford’s Valencia plant in Spain. The agreement is designed to help Ford reduce production costs and support the factory’s long-term operations while giving Geely a larger presence in the European market.
Ford and Geely Partner on Valencia Manufacturing Hub
While Canada and Mexico have opened their automotive markets, to varying degrees, to Chinese automakers, the United States has remained reluctant to do so. According to the article, if that changes, established American automakers could face stronger competition from Chinese brands offering lower-priced vehicles without giving up many features or technology.
Ford has already taken a different approach in Europe by announcing a joint venture with Geely focused on its Valencia manufacturing facility in Spain. The partnership aims to provide Ford with a more affordable and sustainable way to keep the plant operating while expanding Geely’s footprint in the region.
Ford CEO Warns About Potential U.S. Competition
Ford CEO Jim Farley previously said that allowing Chinese automakers into the U.S. market would be “devastating” to American manufacturing.
The article notes that even if Ford does not form a partnership with a Chinese automaker in the United States, competing legacy automakers could eventually pursue similar arrangements, potentially reshaping the competitive landscape and prompting other manufacturers to respond.
Joint Venture Details and Vehicle Production Plans
The Ford-Geely joint venture is intended to strengthen both companies’ ability to compete in Europe. Under the proposed ownership structure, Ford will hold a 66% stake, while Geely will own the remaining 34%.
The companies plan to produce a new multi-energy crossover designed by Ford and co-developed with Geely. The Valencia plant will also manufacture a new member of the Bronco family, two electric Geely SUVs, and continue production of the Ford Kuga, which is sold as the Escape in the United States.
Subject to regulatory approval, the joint venture is expected to begin operations during the first half of 2027. The first newly developed vehicles are scheduled to roll off the production line in 2028.
Ford Says Production Will Remain in Europe
Ford said the joint venture “keeps production, investment, and jobs in Europe, at a European plant, with European workers.”
Jim Baumbick, president of Ford Europe, added: “Together we can fully utilize a best-in-class plant with a great workforce and match the industry’s new cost benchmark.”
U.S. Market Remains a Different Environment
According to the article, a similar arrangement remains unlikely in the United States. It also notes that Polestar is set to be barred from selling new vehicles in the country beginning with the 2027 model year under federal connected-vehicle rules targeting technology and automakers linked to China.
The Ford-Geely partnership underscores the companies’ strategy for Europe, with the joint venture focused on expanding production at the Valencia plant while supporting both automakers’ competitive positions in the region.
