Ford Motor Company and Geely Automobile Holdings have signed a landmark joint venture to co-produce a new generation of low- and zero-emission vehicles at Ford’s Almussafes manufacturing plant in Valencia.

The joint venture begins operations in early 2027, with new vehicles arriving in 2028

The deal secures the long-term future of the historic Spanish factory by establishing a shared, high-tech production hub in a move to counter intense global competition, tightening regulation and rising manufacturing costs in Europe.

The venture, which is subject to regulatory approvals, is expected to produce an all-new family crossover for Ford, designed by the carmaker and jointly developed with Geely. Delivering Ford’s “signature capabilities and driving dynamics” forms part of an aggressive product offensive that will bring five new Ford multi-energy vehicles to Europe by 2029.

The site will also produce a new member of Ford’s global Bronco family, positioned as a tough, compact, adventure-ready SUV built for European roads.

Additionally, the site will produce two electric Geely SUVs, tailored for European drivers. Pending approval, the JV will begin operations in the first half of 2027, with the first new vehicles scheduled to roll off the line in 2028.

Existing Ford Kuga production at the site will continue uninterrupted.

Under the proposed ownership structure, Ford will own 66% of the new entity and Geely Auto 34%.

The alliance aligns with an intensifying structural shift across European automotive manufacturing. This development is highlighted by Nissan’s decision to pursue a contract manufacturing arrangement with Chinese automaker Chery, while Stellantis and Chinese EV maker Leapmotor are expanding their 51/49 joint venture with a massive strategy to build and co-develop affordable electric vehicles in Europe.

Ford and Geely said the collaboration accelerates the Chinese carmaker’s international expansion, following overseas sales of 474,228 vehicles in the first half of the year, while advancing Ford’s strategy of using partnerships to compete with speed, efficiency and scale in Europe.

By pooling production volume, Ford and Geely will maximise the capacity of the Valencia plant, lower the cost of every vehicle built there and compete at this emerging cost standard while delivering “world-class multi-energy vehicles and strengthening the local Valencia economy in the process”.

Alex Nan, vice president of Geely Auto Group, said: “This JV with Ford in Europe reflects our commitment to open, collaborative product development as part of our growth strategy, deepening our local presence and commitment to customers in Europe. 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. Put simply: we are building cars in Europe, for Europe, alongside a trusted partner.”

The deal builds on Ford’s partnership with Geely, which stretches back to 2010 when the American automaker sold the Volvo Cars brand to Geely.

The Valencia plant is one of Europe’s most productive and advanced plants, with a potential annual capacity of about 500,000 vehicles, but is currently operating well below its peak, heavily underutilised as Ford winds down older passenger models to make room for the new project.

First opened in 1976 to produce the original Ford Fiesta, the site marked the first time a non-Spanish automaker built a plant in Valencia.

The JV will transform the facility into a shared, high-tech manufacturing hub built to compete at the industry’s new global cost standard.

Jim Baumbick, president of Ford of Europe, said: “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. That’s why we’re building a flexible, cost-effective industrial system with a capable partner in Geely Auto. Together we can fully utilise a best-in-class plant with a great workforce and match the industry’s new cost benchmark. This is all part of Ford’s vision to give European drivers rally-bred handling, true off-road capability and multi-energy technology, with a distinct Blue Oval DNA.”