Ford Motor Company and Geely Auto teamed up to form a new joint venture (JV) in Europe, where the two automakers will produce next-generation multi-energy and electric vehicles at Ford’s manufacturing plant in Valencia, Spain.
Under the proposed ownership structure, Ford will own 66 percent of the new entity while Geely Auto will own the remaining 34 percent. The Blue Oval brand said that the partnership with Geely comes during a challenging period for the European car industry, as automakers in the said market are dealing with intense global competition, high operating costs, and strict environmental regulations.
The JV will transform Ford’s Valencia facility, wherein Ford and Geely plan to maximize the factory, which has the capacity to build up to 500,000 vehicles annually. It will transform the Valencia facility into a shared, high-tech manufacturing hub built to compete at the industry’s new global cost standard. Through this approach, both brands are expected to cut down manufacturing costs, allowing them to stay competitive in the tightly contested European market.
“For nearly 50 years, Valencia has built some of the most-loved cars in our history, and now this team will help build our future. That’s why we’re building a flexible, cost-effective industrial system with a capable partner in Geely Auto. Together we can fully utilize a best-in-class plant with a great workforce and match the industry’s new cost benchmark, said Ford Europe President Jim Baumbick.
The JV will combine the engineering, manufacturing and development know-how of two of the world’s leading automakers to build both Ford and Geely low- and zero-emission passenger vehicles. According to Ford, the cars will be tailored for European drivers and will offer them choice in powertrain technology, as well as outstanding digital experiences.
“This JV with Ford in Europe reflects our commitment to open, collaborative product development as part of our growth strategy, deepening our local presence and commitment to customers in Europe”, said Alex Nan, Vice President of Geely Auto Group. “We are dedicated to delivering vehicles that European customers will choose on merit,” shared Geely Auto Group Vice President Alex Nan.
Pending regulatory approvals, the joint venture will begin operations in the first half of 2027, with the first new vehicles scheduled to roll off the line in 2028.
Ford plans to introduce an all-new crossover in 2028 that features multi-energy options, which could mean that it will offer different powertrain options that could include hybrid and electric powertrains. It is part of an aggressive product offensive that will bring five new multi-energy vehicles to Europe by 2029.
Meanwhile, Geely will produce two new electric SUVs at the Valencia facility in full support of their European focus and growth strategy. The first Geely-branded models to be manufactured under this joint venture are scheduled to roll off the production line in 2028.
Autocar’s Take
Ford and Geely have officially teamed up in Europe, which is seen to be beneficial to both car brands. The joint venture is expected to cut down manufacturing costs, allowing Ford and Geely to stay competitive in the tightly contested European market. This also shows that Ford is willing to work with Geely to gain production know-how in terms of having a better understanding of how to cut down production costs, which is one of the factors that legacy car brands are facing due to the emergence of Chinese car brands.
