Ford and Geely plug into Spain with new EV venture
Ford and China’s Geely plan to build electric vehicles at Ford’s Valencia plant through a European joint venture set to start in 2027.
By Sal Moretti · Money Reporter
2 min read
Geely is heading for Ford’s factory floor in Spain.
The Chinese automaker will build electric vehicles at Ford Motor’s plant in Valencia under a new European manufacturing joint venture, the companies announced Thursday.
The deal still needs regulatory approval. If cleared, the companies said the venture is expected to begin operating in the first half of 2027, with the first new vehicles planned to come off the line in 2028.
Ford will hold the larger piece of the partnership, taking a 66% stake, while Geely will own the remaining 34%, according to the companies’ announcement.
Valencia gets a new job
The Valencia site will keep building the Ford Kuga for now, the companies said in a news release. The planned Geely production would add a fresh electric-vehicle role for the Spanish plant as Ford looks for ways to sharpen its position in Europe.
The announcement follows months of reported talks between Ford and Geely. It also lands as established automakers face faster-moving Chinese rivals that have been pushing into markets outside China for several years, CNBC has reported.
For Ford, the move puts a Chinese partner inside one of its European manufacturing hubs. For Geely, it offers a production foothold through an existing Ford facility in Spain, subject to approval from regulators.
A partnership with history
Ford and Geely are not strangers. The companies said their relationship dates back to 2010, when Ford sold Volvo Cars to Geely.
Ford CEO Jim Farley has previously praised Chinese automakers for their speed and products. He has also said Ford would look to partnerships to support its global operations, according to CNBC.
The new venture fits that playbook. Ford keeps control of the joint venture, while Geely gets a minority stake and a route to produce vehicles in Europe.
The timing is sharp. One day before the announcement, a U.S. Senate committee approved legislation aimed at tightening a ban on Chinese automakers entering the U.S., CNBC reported.
The Spain deal is separate from that U.S. legislative push, but it shows how Chinese car companies and traditional global automakers are still finding ways to work together in other markets.
The companies did not announce vehicle names, production volumes or financial terms beyond the ownership split in the details reported Thursday.
For now, the key dates are set: operations targeted for the first half of 2027, first vehicles expected in 2028, and Ford’s Valencia plant continuing with the Kuga until the new arrangement begins to take shape.
This story draws on original reporting from CNBC.