Ford and Geely have decided that if you can’t beat the future, you might as well build it together. The American giant and Chinese automotive powerhouse are teaming up on a new European manufacturing venture that could reshape the way cars are built on the continent.
The partnership will transform Ford’s Valencia plant in Spain into a shared production hub, with Ford owning 66 per cent of the joint venture and Geely taking 34 per cent. Subject to regulatory approval, operations are expected to begin in the first half of 2027, with the first jointly produced models arriving in 2028.
It is a fascinating alliance. Ford brings decades of European manufacturing experience, while Geely arrives with the momentum of a company rapidly expanding beyond China. Together, they hope to cut costs, improve factory efficiency and accelerate the arrival of new electrified vehicles.
The Valencia facility is no small operation. With capacity for around 500,000 vehicles a year, it is one of Europe’s largest and most advanced car plants. The existing Ford Kuga will continue production, but the factory will gain a fresh wave of new models.
First up, Ford plans to expand the Bronco family with a new compact rugged SUV. There will also be a new Ford crossover, designed by Ford but developed jointly with Geely. Meanwhile, Geely will use the plant to launch two new energy vehicles for European buyers, including the successful EX2 – known as the Geely Xingyuan in China.
The timing makes sense for Geely. Its international sales surged in the first half of 2026, reaching 474,000 vehicles, a huge 158 per cent increase year-on-year. Local production in Europe could help the company avoid trade barriers and become a more familiar name among European buyers.
For Ford, the deal offers a faster route into the electric era without shouldering the entire cost alone. For Geely, it provides a European foothold. The result? A rather unexpected automotive marriage between Detroit and Hangzhou – proving that in today’s car industry, sometimes your biggest rival becomes your factory partner.
