Key Points
Chinese automaker Geely will establish a new European manufacturing joint venture with Ford, utilizing the American company's factory in Spain to produce electric vehicles.
The companies stated that the joint venture is pending regulatory approval, with production planned to begin in the first half of 2027 and the first new vehicles expected to roll off the line in 2028.
Talks between the two sides have been underway for several months. Legacy automakers like Ford are seeking to enhance their competitiveness against the rapidly rising Chinese car manufacturers.
The two companies jointly announced on Thursday that Chinese automaker Geely and Ford will form a European production joint venture, leveraging Ford's Spanish factory to manufacture electric vehicles.
Both parties said the joint venture's implementation requires approval from regulatory bodies in various countries. It is expected to commence operations in the first half of 2027, with the first batch of new models scheduled for mass production in 2028. Official announcements indicate that during the transition period, Ford's Valencia factory will continue to produce the Ford Kuga gasoline model.
Equity Structure: Ford will hold a 66% stake in the joint venture, with Geely holding the remaining 34%.
The automakers disclosed that the joint venture's factory plans to produce multiple models: a new Ford electric crossover SUV, a new model from the Bronco series, and two Geely electric SUVs. All models are slated to begin mass production in 2028.
This collaboration comes after months of negotiations. For years, Chinese car companies have been expanding into overseas markets, and traditional automakers like Ford urgently need to find ways to compete.
The two companies stated in the announcement: "This joint venture responds to the new landscape of the European market—intensifying global competition, rising cost pressures, and tightening regulations. The Valencia factory will undergo a capacity restructuring to align with the industry's next-generation cost standards for production."
Ford and Geely executives publicly outlined the joint venture's plan to build a factory at Ford's Valencia facility in Spain.
For a long time, overseas automakers like Ford have typically partnered with Chinese companies to focus on the Chinese domestic production and sales market. Now, many traditional automakers are extending their cross-border collaborations to Europe.
Stellantis, the parent company of Chrysler, is deepening its long-term partnership with China's Leapmotor, implementing the collaboration in Europe. German automaker Volkswagen has also expressed a willingness to open its underutilized European factories to Chinese brands to reduce production costs.
A day before Ford announced this collaboration, a US Senate committee voted to approve a bill tightening the ban on Chinese automakers selling vehicles in the United States.
Ford CEO Jim Farley has repeatedly acknowledged the R&D efficiency and product capabilities of Chinese automakers. He has also previously stated that Ford will rely on various strategic collaborations to optimize its global business layout.
Ford and Geely's connection dates back to 2010, when Ford sold Volvo Cars to Geely.
Geely Vice President Alex Nan stated in the announcement: "We are committed to creating products that impress European consumers through hard power: equipped with top-tier industry features, solid build quality, and helping Europe achieve its green development goals. In short, we are partnering with a reliable ally to build cars in Europe, serving the European market."
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Editor: Guo Mingyu