Ford and Geely have formed a Europe-focused joint venture (JV) centered around Ford‘s manufacturing hub in Valencia. The JV will manufacture Ford and Geely multi-energy passenger vehicles for the European market.
By pooling production volume, the companies will maximize the capacity of the Valencia plant and reduce the cost of vehicles built there. 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.
“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,” said 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.”
Transforming Valencia
The JV will transform Ford’s Valencia facility into a shared, high-tech manufacturing hub. The plant opened in 1976 and built the original Fiesta, Ford’s first global front-wheel-drive car.
Under the proposed ownership structure, Ford will own 66% of the new entity and Geely Auto 34%.
“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,” said Jim Baumbick, the president of 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.”
The JV will combine the engineering, manufacturing and development know-how of both auto makers to build Ford and Geely low- and zero-emission passenger vehicles. The cars will be tailored for European drivers, offering them choice in powertrain technology.
Ford and Geely’s planned joint venture in Valencia will support production of several new models from 2028. Ford will continue building the Kuga alongside a new compact Bronco SUV and a jointly developed multi-energy family crossover. Geely plans to manufacture two electric SUVs at the facility as part of its European expansion strategy, with the first Geely-branded vehicles expected to enter production in 2028. According to the companies, the partnership is intended to strengthen Ford’s European product line-up while supporting Geely’s international growth.
“This partnership shows how auto makers are strengthening Europe’s industrial base, but we can’t do it alone,” said 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.”
In related news, Volkswagen launches ID Cross compact electric SUV built on MEB+ platform