(VALENCIA, SPAIN) – Ford and Chinese automaker Geely Auto have announced plans to jointly produce low and zero emission vehicles at Ford’s factory in Valencia. The partnership aims to revive Ford’s position in the European market as it faces intensifying competition from fast growing Chinese rivals.
The joint venture, which still requires regulatory approval, will be owned two thirds by Ford and one third by Geely. Geely’s wider portfolio includes brands such as Volvo and Polestar. Both companies said the tie up will focus on five vehicle models.
Under the arrangement, Ford plans to continue production of the plug in hybrid Kuga and will add a new Bronco sport utility vehicle, with output due to begin in 2028. Geely intends to manufacture two electric SUVs at the plant, with the first also scheduled for 2028. The two manufacturers added that they will jointly develop a new crossover model with a multi energy powertrain, which will also appear in 2028.
The collaboration comes as the US electric vehicle market faces headwinds and global trade tensions rise, fuelled by US tariff policy. That policy has largely shut Chinese firms out of the American market, even as US automakers continue to work with Chinese partners in manufacturing. Chinese car brands, meanwhile, are steadily strengthening their presence in North America and beyond.
No financial terms for the Valencia venture were disclosed. The plant is a significant industrial asset in the region and the new production plans are expected to secure local jobs and supply chain activity through the end of the decade.