Ford Motor Company and Chinese automaker Geely have announced the formation of a new joint venture, headquartered at Ford's Valencia factory. This collaboration aims to leverage shared manufacturing to develop and assemble new energy vehicle lines for both brands. Under the proposed ownership structure, Ford will hold 66% of the shares, while Geely will own 34%.

This agreement helps Ford accelerate its European strategy and assists Geely in rapidly advancing its market localization. Following legal procedures, the joint venture is expected to officially commence operations in the first half of 2027, with the first vehicle rolling off the production line in 2028.

The two automakers had been negotiating the collaboration for several months, according to a Reuters report in February. Executives noted that their long-standing relationship, stemming from Geely's acquisition of Volvo from Ford in 2010, facilitated the discussions.

The Geely EX2, also known as Geely Xingyuan or Geome Xingyuan in China. Photo: Geely

Ford's Valencia factory, one of Europe's largest production facilities with an annual capacity of 500,000 vehicles, will serve as the shared manufacturing hub. Transforming this complex into a collaborative center allows both companies to optimize capacity, enhance product development, and reduce costs. This move is also expected to boost the local economy by creating jobs in the automation industry.

In addition to maintaining the current Ford Kuga production line, the joint venture will expand its product portfolio with new models launching from 2028. This includes extending the Bronco lineup with a new small off-road SUV. A new Ford-branded crossover line will also be introduced, with the US company handling design and development as a joint effort with Geely.

The Chinese automaker will produce two new energy vehicle models here from 2028, including the EX2 (known as Geely Xingyuan in China), a current best-seller for the company, according to CarNewsChina. The cooperation agreement comes as Geely experiences strong international market growth. In the first half of 2026, Geely's overseas sales reached 474,000 vehicles, a 158% increase compared to the same period in 2025.

Spain is a popular choice for Chinese automakers, being Europe's second-largest car-producing nation after Germany, and offering lower labor and energy costs. BYD, the world's largest electric vehicle manufacturer, has indicated Spain is on its shortlist. Chinese brand Leapmotor will produce an electric SUV at its joint venture partner Stellantis's factory in Zaragoza, and premium brand Hongqi is in discussions with Stellantis about producing vehicles at one of its factories in the country.

My Anh