Ford Partners With Geely on Valencia Manufacturing Venture
The two-thirds/one-third joint venture will produce EVs and traditional vehicles at Ford's underutilized Spanish plant.
Ford has announced plans for a joint venture with Geely Auto to manufacture vehicles at its factory in Valencia, Spain.
What Happened
The joint venture will be owned two-thirds by Ford and one-third by Geely. The partnership will produce both low- and zero-emission vehicles at the Valencia plant. Ford plans to continue production of its Kuga PHEV while adding a new SUV—reportedly gas-powered—in 2028. Geely intends to build two electric SUVs at the facility, with the first also beginning production in 2028. The deal comes as Ford's Valencia factory, which has annual capacity for 500,000 vehicles, produced fewer than 100,000 units in 2025.
Why It Matters
The partnership represents a strategic realignment for Ford in Europe, where it has struggled against intensifying competition and regulatory pressure. The company gains access to Geely's manufacturing scale and cost structure while sharing the financial burden of the transition to electrification. For Geely—which owns brands including Volvo and Polestar—the venture provides a pathway into European production that sidesteps tariffs on imported vehicles.
The Bottom Line
The Ford-Geely joint venture underscores a broader industry trend toward cross-border collaboration as traditional automakers seek to cut costs in an increasingly competitive EV market. Production is scheduled to begin ramping up at the Valencia plant through 2028.
