Ford and Geely will collaborate to manufacture electric vehicles at Ford's facility in Spain. Ford holds a 66% stake, while Geely owns 34%.

      **TL;DR** Ford and Geely have established a joint venture at Ford’s Valencia facility. Ford holds a 66% stake while Geely has 34%. They plan to produce four models starting in 2028, including electric vehicles from both companies. Operations are set to commence in the first half of 2027.

      Ford and Geely announced on Thursday a manufacturing joint venture aimed at producing electric vehicles at Ford's plant in Valencia, Spain. Ford will control 66% of the venture, and Geely will hold 34%. Subject to regulatory approvals, the joint venture is expected to start operations in the first half of 2027, with the initial vehicles expected to be launched in 2028. In the meantime, the plant will continue to manufacture the Ford Kuga.

      The venture will develop four models: a new electric crossover for Ford, a new addition to the Bronco lineup, and two electric SUVs from Geely. This partnership seeks to address what the companies describe as “the new realities of the European market: heightened global competition, ongoing cost pressures, and stricter regulations.” Ford and Geely's relationship began in 2010 when Ford sold Volvo Cars to the Chinese firm, and they are now collaborating on a production line.

      Earlier this year, Geely decided to halt the construction of new factories, opting instead to utilize existing Volvo facilities and partnerships with Ford and Renault for manufacturing abroad. The Valencia joint venture represents a key outcome of that approach. Stellantis has been broadening its collaboration with China’s Leapmotor in Europe, and Volkswagen has expressed willingness to share under-used European factories with Chinese brands. Traditional automakers, who have long competed with Chinese firms in China, are now welcoming them into their own factories to remain competitive in Europe.

      The timing carries important implications. A Senate committee in the US approved legislation on Tuesday aimed at tightening restrictions on Chinese automakers entering the American market. Ford CEO Jim Farley has acknowledged the competitiveness and innovation of Chinese automakers while concurrently advocating for measures to keep them out of the US market. The joint venture in Spain allows Ford to leverage Geely's EV technology and cost efficiencies in Europe, while also maintaining the political distance that Washington requires. Chinese car sales in the UK surged from 384 in 2015 to 285,000 last year, and Geely’s VP Alex Nan mentioned that the venture is “building cars in Europe, for Europe, alongside a trusted partner.” The reception of this model by European regulators and consumers will ultimately determine its scalability.