Ford, Geely set JV at Valencia plant

Ford Motor Company and Geely Automobile Holdings have agreed to establish a Europe-focused manufacturing joint venture at Ford’s Valencia, Spain plant. The plan was announced on July 23, 2026 and centers on producing multi-energy passenger vehicles for the European market. The arrangement brings together Ford’s existing manufacturing footprint in Spain and Geely’s electric vehicle expertise to supply a range of new models.

Under the agreement, Ford will own 66% of the joint venture, while Geely will hold a 34% stake. The partners describe the venture as designed to address intense global competition, cost pressure and tightening regulation in Europe. The joint venture will operate from Ford’s existing Valencia facility, which will be converted into a shared production hub for both companies.

The joint venture is expected to begin operations in the first half of 2027, subject to regulatory approvals. Until that point, the partners plan to prepare the Valencia site for its new role, while keeping current activities in place. The first new vehicles produced under the joint venture are scheduled to roll off the Valencia line in 2028.

The timeline sets a roughly one-year gap between the start of joint venture operations and the launch of new model production. This period is intended for industrial retooling and integration of joint processes at the plant. The schedule positions the new products to reach the European market toward the end of the decade.

Initial production plans at the joint venture include an all-new Ford multi-energy crossover aimed at European customers. The site will also build a new member of the Bronco family for Ford, expanding that nameplate’s presence in Europe. For Geely, the joint venture is slated to manufacture two electric SUVs, also targeting the European market, with all four models planned to start production in 2028.

These vehicles encompass both multi-energy and fully electric powertrains, reflecting regulatory and consumer trends in Europe. The combined product program is intended to utilize the Valencia plant’s scale and technology while diversifying the mix of brands and segments produced at the site.

Ford’s Valencia facility is described as having a potential annual capacity of about 500,000 vehicles. Under the joint venture, it will be transformed into a shared, high-tech manufacturing hub for Ford and Geely. The partners have stated that the project is intended to reset Valencia to what they describe as the industry’s emerging cost benchmark.

During the transition, production of the Ford Kuga at Valencia will continue uninterrupted. Maintaining Kuga output helps keep the plant active while preparations for the new multi-energy crossover, Bronco-family model and Geely electric SUVs proceed. This approach is aimed at ensuring continuity of operations ahead of the 2028 product launch.

Ford has indicated that the collaboration with Geely supports its wider product offensive in Europe. As part of this strategy, Ford plans to bring five new multi-energy passenger vehicles to European showrooms by 2029. The Valencia joint venture is one of the platforms intended to deliver that expanded line-up.

By combining shared manufacturing capacity with a mix of Ford and Geely models, the joint venture is positioned as a key element in meeting regulatory demands and competitive pressures. The initiative anchors Valencia as a long-term production base within Ford’s European network while integrating new partners and technologies into the plant.