Ford and Geely Forge Joint Venture in Spain
Jakarta (ANTARA) - Ford Motor Company and Geely Automotive Holding Ltd. have officially entered into a partnership through a joint venture that will be centred on Ford’s production facility in Valencia, Spain.
CarnewsChina reported on Thursday (23/7) local time that the move signals a new shift in the global automotive industry landscape, in which Western and Chinese carmakers are increasingly choosing to collaborate to face competition in electrified vehicles in the European market.
Under the proposed ownership structure, Ford will hold 66 per cent of the shares, while Geely will hold 34 per cent.
The two companies aim for the joint venture to begin operating in the first half of 2027, once regulatory approval is obtained, with production of the first model scheduled to start in 2028.
Through this collaboration, Ford and Geely hope to increase factory utilisation, reduce vehicle development costs, and accelerate the launch of new products for their respective brands.
For Ford, the partnership forms part of its strategy to strengthen its product line-up in Europe. For Geely, meanwhile, the cooperation accelerates its localisation of production in the region, allowing it to compete more effectively against other carmakers.
Under the announced product roadmap, the Valencia plant will continue to produce the Ford Kuga.
In addition, from 2028 the facility will also assemble a new compact SUV that will be part of the Bronco family, as well as a new Ford crossover developed together with Geely, although its core design will remain under Ford’s control.
For its part, Geely will use the facility to produce two new energy vehicles for the European market.
The collaboration also reflects Geely’s growing global expansion. Throughout the first half of 2026, Geely recorded export sales of 474,000 units, a jump of 158 per cent compared to the same period a year earlier.
That achievement was one of the factors driving the company to expand its production base outside China through partnerships with established carmakers such as Ford.
If everything proceeds as planned, the joint venture has the potential to become one of the largest collaboration models between American and Chinese carmakers in Europe.
The partnership also demonstrates how production efficiency and electric vehicle development have now become the primary focus of the global automotive industry.