Ford and Geely partnership set to save European manufacturing base and boost car production

► Ford and Geely Auto announce partnership ► Ford’s Valencia plant will also build Geely cars ► New Bronco model to be produced there, plus two Geely SUVs

Ford and Geely Auto have confirmed a joint venture that will allow the Chinese brand to begin producing cars at Ford’s manufacturing plant in Valencia.

Ford says the new joint venture ‘secures the future’ of the Valencia plant, which has been manufacturing only the Kuga SUV for the past few years after other models such as the Galaxy and S-Max were discontinued. The aim is to ‘pool production volume’ with Geely, enabling its Chinese partner to manufacture cars locally, and also allowing new Ford models to be built there.

Ford cites ‘intense global competition, relentless cost pressure and tightening regulation’ for what it considers a tough European market, with this joint venture intended to alleviate those challenges.

The first joint venture operations are expected to commence in the first half of 2027 ‘pending regulatory approval,’ with Geely Auto securing 34 per cent of the new joint venture entity and Ford controlling 66 per cent.

What does Ford get out of this?

As well as the Kuga continuing to be produced in Valencia, Ford has confirmed that its European-spec Bronco model – the one first announced as part of its ‘Ready, Set, Ford’ plans – will be manufactured at the Spanish site.

The bigger news, however, is that a new ‘multi-energy’ crossover designed by Ford but developed in partnership with Geely Auto will also be manufactured in Valencia, launching in 2028. Like the Bronco, this new model is another part of Ford’s plan to launch five new models in Europe by the end of 2029.

Aside from new models, securing investment in Valencia avoids the plant’s restructuring or closure. ‘This partnership shows how automakers are strengthening Europe’s industrial base, but we can’t do it alone,’ says Jim Baumbick, head of Ford Europe (pictured above).

What does Geely Auto get out of this?

Likely the most lucrative part of the deal for Geely is access to European manufacturing, allowing the Chinese brand to bypass any tariffs or additional costs imposed by the European Union. The same is happening at Nissan’s plant in Sunderland, where a proposed deal with Chery Group is being discussed to allow the Chinese brand to build cars at Nissan’s underused facility in the north east of England.

That said, Geely Auto has also confirmed that two new electric SUVs will be manufactured at the Valencia plant, with the first expected to launch in 2028. This is part of the brand’s expansion into Europe, with models such as the Starray plug-in hybrid and the small EX2 electric supermini having already arrived in Europe over the past year or so.

‘We are dedicated to delivering vehicles that European customers will choose on merit,’ says Alex Nan, vice president of Geely Auto. ‘Put simply: we are building cars in Europe, for Europe, alongside a trusted partner.’

Victor Yang, executive vice president of Geely Holding Group, also clarifies: ‘We are not bringing any workforce from China; we are relying solely on the expertise of the workforce in Valencia.’

Why has Ford chosen Geely as a partner?

Ford says the relationship between itself and Geely Auto stems from when it sold Volvo to Geely Group in 2010, where Ford then ‘watched it protect and revitalise the brand.’ Alongside other factors, Ford also says it shares ‘a belief that customers should be able to choose their own path through the energy transition’ with Geely.