Ford and Geely to Form Joint Venture, Sharing Production Lines at Valencia, Spain Plant
Claire Weston
Ford and Geely will co-produce cars at a shared plant near Valencia, Spain, with Ford holding 66% of a new joint venture set to launch in H1 2027 — the latest case of a Western automaker opening European capacity to a Chinese rival, as tariffs and costs reshape the continent's competitive map.
How is the joint venture structured?
The two sides will form a Europe-focused JV: Ford holds 66%, Geely 34%, with operations planned for H1 2027, pending regulatory approval.
The plant sits at Almussafes, near Valencia. Once retooled, annual capacity will rise to 500,000 vehicles.
This means → Ford secures majority control and pricing power; Geely secures local European production capacity. One partner needs scale to cut unit costs; the other needs a way around tariffs.
What will the factory build?
Ford will keep producing the plug-in hybrid Kuga and add a new Europe-market Bronco SUV. Both models target a 2028 production start.
Geely will build two battery-electric SUVs on the same lines, with the first also due in 2028.
The two will also co-develop a crossover SUV — designed by Ford, co-engineered with Geely. In plain terms = five models on one production line — hybrid, pure-electric, and jointly developed — squeezing every minute out of the factory.
Why does Ford need Geely?
Ford itself put it bluntly: Europe is "one of the most competitive battlegrounds" in the global auto industry, squeezed by tighter regulation, high operating costs, and relentless pressure from new rivals on both manufacturing cost and technology.
Ford's European president Jim Baumbick said: "This partnership shows how automakers can jointly strengthen Europe's industrial base — but we cannot do it alone."
This reflects a deeper signal: the economics of a legacy Western automaker running a European plant solo no longer add up. Sharing the production line is no longer optional — it is the math.
What is Geely after?
The most direct motive: bypassing EU tariffs of up to 45% on China-made EVs. Cars built locally in Europe dodge that bill entirely.
Geely's overseas sales hit 474,000 units in H1 2026, up 158% year-on-year — its international business is surging, but the tariff wall is rising just as fast.
This means → Geely is not testing the waters; it is racing to lock in capacity. The EU is still studying whether to impose new tariffs on plug-in hybrids too. If that happens, Chinese automakers without local production will be even more exposed.
Is this model unique to Ford and Geely?
No. Stellantis has announced that its Spanish and French plants will produce EVs for Leapmotor and Dongfeng, respectively.
Nissan last month signed a non-binding agreement with Chery to explore contract-manufacturing Chery models at its Sunderland, UK plant.
Put simply = "Chinese automakers plugging into legacy European factories" is becoming an industry template. Whether the Ford–Geely JV wins regulatory approval and launches on schedule in 2027 will be the first real test of whether this model actually works.
Content is for reference only, not financial advice.