Geely has reached an agreement to take over part of a Ford Motor factory in Spain.
Ford has now confirmed earlier reports of the new arrangement.
Under the arrangement, Geely will manufacture vehicles on a currently unused assembly line at the site, which also produces Ford's Kuga crossover.
The two carmakers plan to form a manufacturing joint venture at Ford’s Valencia,
Spain, plant, combining scale and factory utilisation, to build Ford and Geely vehicles.
The Valencia Almussafes facility, formerly Ford's biggest plant outside the US, has been running at under a quarter of its 450,000-vehicle yearly capacity.
Discussions between the two firms have been ongoing since the start of the year.
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. The Valencia plant will continue to produce the Ford Kuga in the meantime.
"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,” said Jim Baumbick, President, Ford of Europe. "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. This is all part of Ford’s vision to give European drivers rally-bred handling, true off-road capability and multi-energy technology, with a distinct Blue Oval DNA."
“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: on industry leading features, on high-quality and on actively contributing to Europe’s green future. Put simply: we are building cars in Europe, for Europe, alongside a trusted partner.”
Ford Models:
The Ford Kuga: Production of the Ford Kuga will continue uninterrupted in Valencia.
A new Bronco: Valencia will also produce a new member of the global
Bronco family - described by Ford as a 'tough, compact, adventure-ready SUV built for European roads', with production starting in 2028.
A new Crossover: A multi-energy family crossover, designed by Ford and
jointly developed with Geely will arrive in 2028. It is part of a product offensive
that will bring five new multi-energy vehicles to Europe by 2029.
Geely Models:
Electric SUVs: Geely Auto plans to produce two 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.
Madrid's strategy
It appears the Spanish authorites have played a role in the investment. "This partnership shows how automakers are strengthening Europe's industrial base, but we can't do it alone," said Jim Baumbick. "What we've achieved in Valencia, with the
ongoing support of Spain's national and regional governments, is a masterclass in
public-private partnership that sets the benchmark for the rest of Europe."
According to a Bloomberg report, the partnership fits into Spanish PM Pedro Sánchez's broader strategy of positioning Spain more prominently within Europe's car manufacturing landscape as the industry undergoes restructuring.
He has been actively attracting Chinese manufacturers by offering them a domestic manufacturing footprint that allows them to sidestep EU tariffs, in addition to an established supplier base, a skilled workforce, and comparatively cheap energy.
Unlike Germany, France and Italy, Spain does not have a major domestic car manufacturing group of its own (though there are the VW-owned SEAT and Cupra brands/plants).
Officials have indicated that these Chinese-backed projects are expected to generate thousands of new jobs, though they have also conceded that certain ventures will rely initially on Chinese personnel and technology.
Several other similar projects have emerged recently in the country.
Chery Automobile, together with Spanish marque Ebro, has restarted a former Nissan plant in Barcelona that currently employs over 1,500 workers.
Separately, BAIC Motor has begun making off-road vehicles under the relaunched Santana nameplate in Andalusia.
Elsewhere, Stellantis and CATL are constructing a €4.1bn ($4.7bn) battery facility in Zaragoza, expected to come online in 2028.
The two companies had originally agreed in 2024 to jointly invest as much as €4.1bn in the venture to produce lithium iron phosphate (LFP) batteries at the site.
Additional developments in the country include Seat & Cupra's start of production last month on the Cupra Raval and Volkswagen ID. Polo models at its Martorell site, launching the Volkswagen Group's Electric Urban Car Family initiative.
That same month, Škoda Auto began series production of its fully electric Epiq model at the Volkswagen plant in Pamplona, Navarra – the first time a Škoda vehicle has been built in the country.
Also in that period, SAIC Motor announced plans to set up its first EU vehicle production site in the Galicia region of Spain, with an initial investment of roughly €200m.
