Ford Motor Company and Geely Auto Group have announced a new joint venture that will reshape the future of Ford’s Valencia plant in Spain. The agreement, revealed on July 23, 2026, brings together two of the world’s best known automakers in a partnership designed to strengthen their position in an increasingly competitive European market.
The new venture will see Ford and Geely share production at the Valencia facility, one of the most advanced and productive plants in Europe. The site, which has been in operation since 1976 and once built the original Ford Fiesta, has a potential annual capacity of around 500,000 vehicles. By combining forces, the two companies aim to make full use of that capacity and lower production costs across the board.
A response to a changing European market
Both companies pointed to the intensifying pressures facing automakers in Europe, including tightening emissions regulation, rising operating costs and growing competition from new global players. According to the companies, pooling resources at Valencia will allow them to meet these new industry benchmarks while still delivering high quality, technologically advanced vehicles to European customers.
Under the terms of the deal, Ford will hold a 66 percent stake in the new entity, with Geely Auto holding the remaining 34 percent. The joint venture is expected to begin operations in the first half of 2027, pending regulatory approval, with the first vehicles rolling off the production line in 2028.
What Valencia will build
Production of the Ford Kuga, one of the most popular plug in hybrids in Europe, will continue without interruption throughout the transition. Alongside it, Valencia will begin manufacturing a new addition to the Bronco family, described as a compact and adventure ready SUV built specifically with European roads in mind.
The plant will also produce an entirely new multi energy crossover, jointly developed by Ford and Geely and carrying what Ford describes as its signature driving dynamics. This model forms part of a broader plan that will bring five new passenger vehicles to European showrooms by 2029.
On the Geely side, the Valencia plant will manufacture two new electric SUVs under the Geely brand, marking the first Geely branded models built at the facility. Production of both models is expected to begin in 2028, supporting the brand’s broader push into the European market.
Building on a long standing relationship
Ford and Geely’s relationship dates back to 2010, when Ford sold Volvo Cars to the Chinese manufacturer. Ford executives have pointed to Geely’s stewardship of Volvo since then as a key reason for the trust between the two companies. Both sides describe a shared commitment to quality, efficient sourcing and continuous improvement, along with a belief that customers should be free to choose their own path through the transition to electrification.
Executives from both companies framed the agreement as proof that automakers can strengthen Europe’s industrial base through collaboration, while also highlighting the importance of continued support from Spain’s national and regional governments in making the Valencia plant a model for future partnerships across the continent.
Geely’s push into Europe comes on the back of strong momentum internationally, with the company reporting overseas sales of 474,228 vehicles in the first half of the year. For Ford, the venture forms part of its broader strategy of using partnerships to compete on speed, efficiency and scale in a market that continues to shift rapidly toward electrification.
