Geely Auto, Ford establish manufacturing JV at Valencia plant

Chinese company Geely Automobile Holdings and Ford have announced an agreement to form a Europe-focused joint venture (JV) at Ford’s Valencia manufacturing hub in Spain.

The JV will share production capacity to deliver multi-energy vehicles for both Geely Auto and Ford brands, Geely said in a media release.  

Pending regulatory approvals, the JV will officially begin operations in the first half of 2027, with the first new vehicles scheduled to roll off the production line in 2028.

The JV aims to transform Ford’s Valencia facility into a shared, high-tech manufacturing hub. By optimizing factory utilization and sharing development costs, the partnership will bolster operational excellence and provide long-term stability and employment opportunities for Valencia’s automotive workforce. Under the proposed ownership structure Geely Auto will own 34% of the new entity and Ford will own 66%, the media release said.

Geely plans to produce two new energy models at the Valencia plant, with the first rolling off the production line in 2028.  

“This strategic cooperation with Ford is an important step towards open collaboration and mutually beneficial to both parties. It represents a milestone in Geely Auto’s global development and will further solidify Geely’s presence in Europe,” said Alex Nan, Vice President of Geely Auto Group. “We are dedicated to delivering vehicles that European customers will choose on merit: on industry leading features, on high-quality and on actively contributing to Europe’s green future.”

“For nearly 50 years, Valencia has built some of the most-loved cars in our history, and now this team will help build our future,” said Jim Baumbick, president, Ford Europe. “That’s why we’re building a flexible, cost-effective industrial system with a capable partner in Geely Auto. Together we can fully utilize a great plant with a great workforce and match the industry’s new cost benchmark.”