Ford takes 66% stake in Geely joint venture to build five models at Valencia plant from 2028
The US automaker will hold 66% of the venture, with Geely taking 34%, to produce two Ford SUVs, two Geely electric SUVs and a jointly developed crossover, all starting in 2028.
The deal
Ford and Geely Auto announced on Thursday a joint venture at Ford's Almussafes plant in Valencia, Spain. Ford will hold a 66% stake and Geely 34%, pending regulatory approval. The venture plans to produce five models: the existing Ford Kuga plug-in hybrid, a new European version of the Bronco SUV, two electric SUVs from Geely, and a jointly developed multi-energy crossover. All new models are scheduled to begin production in 2028. The companies said the partnership would reset Valencia to build at the industry's emerging cost benchmark.
The joint venture addresses the new realities of the European market — intense global competition, relentless cost pressure and tightening regulation — resetting Valencia to build at the industry's emerging cost benchmark.
The joint venture is expected to begin operations in the first half of 2027, with production of the new models starting in 2028.
- Ford and Geely announce joint venture at Valencia plant
- Joint venture begins operations
- Production of new models starts: Bronco, Geely electric SUVs, and crossover
Production and employment
The Valencia plant, originally built for the Ford Fiesta, has an annual capacity of around 500,000 vehicles. Employment has fallen to about 4,000 from 8,000 a decade ago. The joint venture is expected to increase utilisation and may require expanding the workforce. Ford Europe chief Jim Baumbick said the collaboration would fully utilise the plant and meet the industry's new cost benchmark.
This partnership shows how automakers can strengthen Europe's industrial base, but we cannot do it alone. Together we can fully utilise a first-class plant with outstanding employees and meet the industry's new cost benchmark.
Geely's European push
Geely, which owns Volvo, Polestar, Lotus and half of Smart, has been seeking to expand in Europe to bypass EU tariffs on Chinese-made electric vehicles. Those tariffs can reach 37.6% for Geely's imports. The Valencia venture gives Geely its first production site in Spain. Other Chinese automakers have also set up European operations: BYD in Hungary, Chery in Barcelona, and Leapmotor with Stellantis in Madrid. The trend reflects both overcapacity in China and the desire to access the EU market directly.
Ford's European challenges
Ford Europe has been cutting costs and jobs for years. The Cologne plant, its largest European site, builds the Explorer and Capri electric models but sales have fallen short of expectations. Employment in Cologne could drop below 8,000 by 2027, down from 20,000 a decade ago. Baumbick said the Valencia joint venture would not affect Cologne, calling the German-made EVs "a decisive part of our portfolio." The US parent company faces a contrasting political environment: Washington is debating a bill to ban sales of connected vehicles with Chinese involvement above 15% from 2027.
Political reaction
Spanish Prime Minister Pedro Sánchez attended the announcement in Almussafes and praised the project.
The decision underscores Spain's ability to attract large investments and participate in the profound changes shaping the future of mobility.
He added that foreign automakers know investments in Spain's value chain are fundamental.
