Ford and Geely plan joint venture at Valencia plant

Ford and Geely said on 23 July 2026 that they will create a joint venture at Ford’s Valencia plant in eastern Spain, where they plan to produce four new models for the European market.

The US carmaker will hold 66 percent of the venture, while China’s Geely will hold 34 percent. The project was presented at the Valencia plant.

The companies said the plant will continue making Ford’s Kuga plug-in hybrid without interruption. From 2028, it is expected to produce a new Ford Bronco, two Geely electric SUVs and a new multi-energy family crossover designed by Ford and jointly developed with Geely.

Ford Europe President Jim Baumbick said the goal was to use the plant at maximum capacity. The companies said the partnership would help cut production costs at the Valencia site, which assembled fewer than 100,000 vehicles in 2025, its lowest output on record, according to the UGT Ford trade union. Ford and Geely said the plant could reach annual production capacity of about 500,000 vehicles in the longer term.

Spanish Prime Minister Pedro Sánchez welcomed the agreement during a visit to the factory. He said it showed Spain’s ability to attract investment and take part in the transformation of the automotive sector.

The source says the deal follows a similar move by Stellantis, which announced in May that it would partly hand over its Madrid assembly plant to Chinese partner Leapmotor. Leapmotor is due to begin producing its B10 model there this year.

The source says Chinese carmakers are looking to manufacture inside the European Union to avoid tariffs on imported vehicles as the market shifts toward electric vehicles. It also says Spain has become a key destination for Chinese carmakers seeking a manufacturing foothold in Europe, helped by its position as Europe’s second-largest vehicle producer after Germany and by lower labour and energy costs.