Ford and Geely will collaborate on the production of electric vehicles at Ford's facility in Spain. Ford holds a 66% stake, while Geely owns 34%.

      Ford and Geely announced a joint venture on Thursday that will manufacture electric vehicles at Ford’s Valencia plant in Spain. Ford will hold a 66% stake, while Geely will have 34%. Subject to regulatory approvals, operations are set to begin in the first half of 2027, with the first new models expected in 2028. In the meantime, the plant will continue producing the Ford Kuga.

      The joint venture will develop four vehicles: a new electric crossover for Ford, an additional Bronco model, and two electric SUVs from Geely. This collaboration aims to tackle what both companies describe as the “new realities of the European market,” including intense global competition, ongoing cost pressures, and stricter regulations. Ford and Geely's relationship stretches back to 2010 when Ford sold Volvo Cars to the Chinese company, and they now share production resources.

      Earlier this year, Geely halted the establishment of new factories, opting to use Volvo’s existing facilities and collaborate with Ford and Renault for international production. The Valencia joint venture represents a significant outcome of this strategy. Meanwhile, Stellantis has been expanding its partnership with China’s Leapmotor into Europe, and Volkswagen has expressed willingness to share underused European factories with Chinese brands. Traditional automakers that have historically competed with Chinese companies in China are now inviting them into their European operations to remain competitive.

      The timing is significant, as just recently, a US Senate committee endorsed legislation to strengthen a ban on Chinese automakers entering the American market. Ford CEO Jim Farley has acknowledged the strengths of Chinese automakers while simultaneously advocating to prevent their entry into the US. The Spanish joint venture allows Ford to leverage Geely’s EV technology and cost efficiency in Europe, all while adhering to the political separation required by Washington. Chinese car sales in the UK surged from 384 units in 2015 to 285,000 last year, and Geely’s VP Alex Nan stated that the venture is "building cars in Europe, for Europe, alongside a trusted partner." Whether European regulators and consumers share this view will influence the scalability of the venture.