Ford and Geely Auto plan to establish a European manufacturing joint venture centered on Ford’s assembly plant in Valencia, Spain, as the automakers seek to improve factory utilization, lower production costs and expand their low- and zero-emission vehicle offerings.
The proposed company would manufacture Ford and Geely passenger vehicles for the European market from the Valencia facility. By combining production volumes from both automakers, the partners expect to use the plant more efficiently and reduce the cost of each vehicle produced there.
Ford said the partnership is intended to secure the long-term future of the Valencia plant, provide greater stability for its workforce and create the potential for additional high-tech manufacturing jobs.
The factory currently produces the Ford Kuga SUV, one of Europe’s more popular plug-in hybrid vehicles. Kuga production is expected to continue without interruption under the proposed joint venture.
Beginning in 2028, the plant is expected to add four vehicles across the Ford and Geely brands.
Ford plans to produce a new multi-energy crossover designed by Ford and jointly developed with Geely. The vehicle will incorporate Ford’s driving dynamics and capability while using technology developed through the partnership.
Valencia is also expected to begin producing a new compact SUV within Ford’s global Bronco family in 2028. The multi-energy model will be designed to combine off-road capability with the on-road performance expected by European customers.
Geely plans to manufacture two electric SUVs at the plant beginning during the same year.
Together with the existing Kuga, the planned production program would give Valencia five vehicles from two automotive brands.
A multi-energy vehicle platform can support more than one powertrain configuration, potentially including internal-combustion, hybrid, plug-in hybrid or fully electric systems. This approach can give manufacturers greater flexibility as European consumer demand and emissions regulations continue to evolve.
Ford described the venture as a response to intense competition, rising industrial costs and European electric vehicle requirements that have not always aligned with the pace of consumer adoption.
The company also cited new international competitors that have changed automotive cost and technology benchmarks. Pooling production with Geely could help Ford improve the economics of its European passenger vehicle operations while maintaining manufacturing within the region.
Ford said it selected a partner willing to invest in European production and manufacture vehicles under the same regulatory and operating requirements faced by established European automakers.
For Geely, the partnership would accelerate its expansion in Europe by providing access to an established manufacturing facility and the ability to produce vehicles closer to European customers.
The joint venture would also support Ford’s broader product strategy of introducing five new passenger vehicles to European showrooms by 2029.
Ford plans to position those vehicles around the brand’s performance, off-road and rally-inspired identity. The company said its future European models will combine practical electrified powertrains with driving characteristics intended to differentiate them from competing products.
The Valencia plant is considered one of Ford’s most advanced and productive European manufacturing facilities. The automaker believes adding Geely volume will strengthen the plant’s competitiveness by spreading fixed costs across a larger production base.
Higher factory utilization can reduce the average cost of producing each vehicle because labor, equipment, property and other fixed expenses are distributed across more units.
The proposed venture is also expected to support suppliers and other businesses connected to the Valencia automotive industry. Ford said retaining production and investment in the region would contribute to the local economy while preserving European manufacturing expertise.
The companies did not disclose the proposed ownership structure, financial commitments or investment amounts associated with the joint venture. The timing of its formal establishment and any required regulatory approvals were also not detailed.
KEY QUOTE:
“Today, we announced that our Valencia plant and its people will be at the heart of a new partnership with Geely Auto, designed to secure the plant’s future, provide long-term stability and create the potential for future high-tech manufacturing job growth.”
“Through this strategic, European-focused joint venture, the new company will manufacture Ford and Geely multi-energy passenger vehicles for the European market, pooling production volume across two automakers to use the plant more fully, lower the cost of every vehicle we build there and strengthen the local Valencia economy.”
“We are making the Valencia plant an automotive manufacturing powerhouse in Europe.”
“This joint venture keeps production, investment and jobs in Europe, at a European plant, with European workers.”
Jim Baumbick, President of Ford Europe
