Ford and Geely plan EV production joint venture in Spain
The companies said Ford will hold 66% of the venture, which is expected to start operations in 2027 and begin vehicle production in 2028.
By Maya Lindqvist · Senior Technology Correspondent
3 min read
Ford Motor and China’s Geely Auto plan to form a manufacturing joint venture in Europe that will build electric vehicles at Ford’s Valencia plant in Spain, the companies said Thursday. The arrangement gives Ford a partner as Chinese automakers expand abroad and established car companies face tougher competition in electric vehicles.
The companies said the venture remains subject to regulatory approvals. If cleared, it is expected to start operating in the first half of 2027, with the first new vehicles scheduled to come off the assembly line in 2028.
Ford will own 66% of the joint venture, while Geely will hold the remaining 34%, according to the companies. They did not disclose financial terms or specify which models will be built at the plant.
The Valencia facility will continue making the Ford Kuga during the period before the new venture begins production, the companies said in a news release. The plant is one of Ford’s European manufacturing sites and would become the base for the planned joint production effort with Geely.
Deal follows months of talks
The announcement follows months of reported discussions between Ford and Geely, CNBC reported. The talks came as Chinese automakers have been pushing into markets outside China for several years, adding pressure on long-established manufacturers including Ford.
Geely is one of China’s major auto groups and has built an international presence through brands and partnerships. Ford and Geely pointed to an earlier link between the companies dating to 2010, when Ford sold Volvo Cars to Geely.
Ford Chief Executive Jim Farley has previously praised Chinese automakers for the pace of their development and the quality of their products, CNBC reported. He has also said Ford would look to partnerships to support its global business.
The companies described the Spanish venture as a manufacturing partnership rather than a broader merger or acquisition. Ford keeps majority control under the announced ownership split, while Geely gains a European production foothold through the arrangement.
Political backdrop
The deal was announced one day after a U.S. Senate committee approved legislation aimed at tightening a ban on Chinese automakers entering the U.S., CNBC reported. That timing places the Ford-Geely plan against a broader political debate over China’s auto industry and its global reach.
The companies did not say how the U.S. legislation could affect the European venture. Their announcement focused on production in Spain and the timeline for regulatory approval, startup and vehicle output.
For Ford, the plan adds another piece to its effort to adjust its European manufacturing operations while competing in electric vehicles. For Geely, the venture would expand its manufacturing role in Europe if regulators approve the deal.
This story draws on original reporting from CNBC.