Ford to partner with Chinese automaker Geely in Spain in new joint
venture
[July 24, 2026] By
ALEXA ST. JOHN
Ford and Chinese automotive company Geely Auto announced plans on
Thursday to jointly manufacture low- and zero-emission vehicles at
Ford's Valencia, Spain factory.
The partnership is a bid to reignite Ford’s offerings for the European
auto market as the legacy carmaker seeks to compete with the likes of
fast-moving Chinese companies that are rapidly dominating auto sales
across the globe.
It comes amid challenges for the American electric vehicle market and
increasing global geopolitical tensions driven by U.S. tariff policy. In
the U.S., policy all but locks Chinese firms out of the market — though
American automakers still partner with companies in China for
production, and Chinese vehicles are making inroads in North America
more broadly.
The joint venture, pending regulatory approval, will be owned two-thirds
by Ford and one-third by Geely, which also owns brands such as Volvo,
Polestar and more.
The two companies said they will focus on five vehicles.
Under the partnership, Ford plans to continue production of the Ford
Kuga plug-in hybrid vehicle, as well as a new Bronco SUV, production for
which will begin in 2028. Geely plans to make two electric SUVs at the
plant, the first of which is also scheduled to begin production in 2028.
The automakers said they will also jointly develop a new “multi-energy”
crossover model to arrive in 2028.
“The joint venture addresses the new realities of the European market —
intense global competition, relentless cost pressure and tightening
regulation — resetting Valencia to build at the industry’s emerging cost
benchmark,” a release from the two companies said.
The JV aligns with Ford leadership's stance about being competitive
outside its domestic market — yet the automaker's executives have
publicly cautioned about Chinese EVs in the U.S.
“We leverage global partnerships and even IP (intellectual property)
sharing, including with the Chinese (companies), to grow our business
around the world,” Ford CEO Jim Farley said in the company's
first-quarter earnings call in April. “How I would think about it is
Ford continues to be a global company. We want to have the rights to win
around the globe. We need IP and partnerships outside the U.S. to do
that. And when it comes to the U.S. industry itself, we are extremely
protective, as we should be.”
Chinese firms are gaining ground and expanding
Chinese automakers have been gaining momentum in recent years as they
produce high-quality and efficient hybrid and pure EVs — coined “new
energy vehicles” — with advanced technology at a low price-point. These
auto companies have been highly subsidized by the Chinese government
with a vested interest in their success.
However, they are also starting to see a slowdown in China due to
scaled-back consumer purchase incentives and increasing domestic
competition.
So Chinese companies have found early success expanding throughout other
nations in Asia, in Latin America and parts of Europe as the global EV
transition forges ahead to varying degrees outside of the U.S. The war
in Iran has also spurred global interest in Chinese EVs as conflict in
the Strait of Hormuz impacts the world's crude oil and liquefied natural
gas supply.
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A Ford logo is seen on the grille of an unsold vehicle at a Ford
dealership, Nov. 2, 2025, in Littleton, Colo. (AP Photo/David
Zalubowski, File)
The Ford venture will expand Geely's European local production footprint
— and helps keep Ford workers on the line, experts say.
Ford's facing a critical moment
Ford has lost ground in Europe for years, from selling more than 1
million vehicles across the continent a decade ago, down to under half a
million cars last year. While the Valencia factory has annual capacity
of 500,000 vehicles, production fell below 100,000 in 2025.
The partnership is sure to reduce pressure on the American auto giant as
the two share costs. Ford and Geely already share history; Ford sold
Volvo Cars to the Chinese firm in 2010.
“This deal offers a road map for how traditional automakers can survive
and thrive in Europe,” said Jessica Caldwell, head of insights at auto
research firm Edmunds. “Ford gets the scale and cost efficiencies it
needs for its Valencia plant, while Geely gets a direct shortcut around
(European Union) tariffs. More broadly, it underscores a major industry
shift we’re likely to continue seeing: automakers can no longer go it
alone and must collaborate with rivals — Chinese or otherwise — to
survive the capital-intensive transition to electrification.”
U.S. automakers, generally, have spent billions of dollars on
electrification over the past several years. But the Trump
administration has dramatically shifted away from clean vehicle policy,
weakening fuel economy rules and auto tailpipe emissions rules.
The administration also eliminated former President Joe Biden's target
for half of all new vehicle sales in the U.S. to be electric by 2030,
and signed off on Congress’ tax and spending bill that ended federal new
and used EV purchase tax credits.
U.S. automakers likely see potential in the European EV market amid
uncertain EV sales in the U.S., but may also have to explore more
partnerships in order to remain competitive there.
“Like GM before it, Ford has been slowly reducing its reliance on
Europe,” said Sam Fiorani, vice president at AutoForecast Solutions.
“Now, with the help of Geely, Ford can have new products designed for
the European market without bearing the full development costs of a new
platform.
“While Chinese automakers like Geely continue their growth around the
world, Ford should take this opportunity to learn how to cut costs and
develop lower-priced vehicles,” Fiorani added. “If Ford cannot compete
on price in Europe, the automaker may need to look at selling plants
outright rather than sharing them. Losing Europe could hurt Ford’s
standing as a global automaker, but continuing to have the region drain
its finances could be more devastating.”
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