Ford and Geely confirm major European manufacturing partnership

Ford and Geely have confirmed plans to create a new European manufacturing joint venture, bringing vehicles from both companies together at Ford’s factory near Valencia in Spain.

Subject to regulatory approval, the new business is expected to begin operating during the first half of 2027. Production of the first new vehicles is then scheduled to start in 2028.

Ford will own 66% of the proposed joint venture, with Geely Auto holding the remaining 34%. The companies say the arrangement will allow them to share manufacturing capacity, engineering knowledge and development resources while producing a new generation of low and zero-emission cars for European customers.

This is not simply a case of Geely renting some spare space inside a Ford factory. The two manufacturers will jointly develop at least one new vehicle, while the Valencia plant will eventually produce cars carrying both Ford and Geely badges.

What cars will Ford and Geely build in Spain?

Five different Ford and Geely vehicle programmes are currently planned for the Valencia factory.

Production of the existing Ford Kuga will continue while the plant prepares for the new models. The Kuga is currently the only Ford passenger car manufactured at the site and remains an important part of the company’s European range.

From 2028, Valencia will also build a new compact member of the Ford Bronco family. Ford describes it as a rugged, adventure-focused SUV designed for European roads, rather than simply a locally produced version of the large American Bronco.

That could make it closer in spirit to a Bronco Sport, sitting somewhere between a conventional family SUV and a more lifestyle-focused off-roader. However, Ford has not yet revealed the vehicle’s final design, dimensions, engines or European model name.

A second new Ford will take the form of an all-new family crossover. This model will be designed by Ford but developed jointly with Geely, with production also due to begin in 2028.

Ford officially describes it as a “multi-energy” vehicle, meaning it is being developed to support more than one type of powertrain. Reuters reports that the crossover is expected to be available as a fully electric vehicle, plug-in hybrid and range-extender electric vehicle, although the final European specifications have not yet been announced.

Ford says the crossover will retain its own driving characteristics and recognisable Blue Oval identity. That distinction will be important if the company is to avoid accusations that it is simply placing a Ford badge on a Geely-developed car.

Geely will also manufacture two fully electric SUVs at Valencia. Neither was named in Ford’s public announcement, but Reuters reports that the first will be the Geely EX5, with the second vehicle still under development.

Having driven the Geely EX5 during the London to Brighton EV Rally, I can see why it would make sense as the first model to be produced locally. It is a practical, well-equipped electric family SUV competing in one of Europe’s busiest parts of the new-car market.

Localising production could help Geely make the EX5 more competitive while demonstrating that it intends to become a permanent part of the European motor industry.

Why does the Valencia factory matter?

Ford’s Valencia factory opened in 1976, initially producing the original Ford Fiesta. It has since built several important European models, including the Escort, Focus, Mondeo, Galaxy, S-Max and Kuga.

The factory has the potential to manufacture approximately 500,000 vehicles each year, but it has recently been running significantly below that level. Reuters reports that the plant operated at around 26% of its capacity during 2025.

That leaves Ford carrying many of the costs associated with a major car factory without producing enough vehicles to spread those costs effectively.

Combining Ford and Geely production should increase the number of cars passing through the plant. Buildings, machinery, logistics operations and other fixed costs can then be shared across a much larger production volume, reducing the average cost of manufacturing each vehicle.

This is particularly important as established European manufacturers face intense pressure from newer competitors offering electric cars with increasingly advanced technology at lower prices.

Ford describes Valencia as one of its most advanced and productive European factories. The joint venture gives the site a much clearer future while allowing Geely to establish European production without having to build an entirely new factory from the ground up.

Ford’s existing Valencia workforce is expected to transfer to the new joint venture. Ford has also indicated that more employees could eventually be required as production increases, although no confirmed recruitment numbers have been announced.

What does Ford gain from working with Geely?

Developing a completely new car is enormously expensive. Manufacturers must pay for design, engineering, software, safety testing, manufacturing equipment, supplier contracts and regulatory approval before the first customer vehicle is delivered.

Sharing some of that work allows Ford to spread the cost across a larger number of vehicles.

Geely has rapidly developed its expertise in electric vehicles, batteries, hybrid systems, software and connected-car technology. Ford, meanwhile, brings an established European manufacturing operation, a recognisable dealer network and decades of knowledge about European customers.

The new crossover therefore has the potential to combine Geely’s technology and development speed with Ford’s design, chassis engineering and brand identity.

Ford is not alone in taking this approach. The modern car industry increasingly relies on shared platforms and strategic partnerships, even between companies that compete against one another in showrooms.

Ford already works with Volkswagen on electric cars and commercial vehicles. The electric Ford Explorer and Capri use Volkswagen Group’s MEB architecture, while the companies also cooperate on models including the Ford Tourneo Connect, Volkswagen Caddy, Ford Ranger and Volkswagen Amarok.

Ford also announced a separate partnership with Renault Group in December 2025. The agreement will produce two smaller Ford electric cars using Renault’s Ampere technology and manufacturing network, with the first expected to reach European showrooms in early 2028.

One of these models is widely expected to become the spiritual successor to the Ford Fiesta, although Ford has not yet officially confirmed whether the famous Fiesta name will return.

The partnership gives Ford access to technology that has already proved itself beneath some of Europe’s most talked-about small electric cars. Renault’s AmpR Small architecture underpins the highly successful Renault 5 E-Tech, as well as the new electric Nissan Micra. The Renault 5 exceeded 100,000 sales following its launch and became Europe’s best-selling electric car in the B-segment.

Ford will still lead the design and development of its own vehicles, with the company promising distinctive styling, driving characteristics and the recognisable personality buyers would expect from a Ford.

Rather than relying on one partner for its entire range, Ford appears to be choosing different companies for different parts of the market.

Volkswagen provides the basis for its current Explorer and Capri EVs. Renault will help deliver smaller and potentially more affordable electric cars. Geely will support a new family crossover while also bringing additional production volume to Valencia.

What does Geely gain from the partnership?

For Geely, the most obvious benefit is access to an established European factory.

Reuters says Valencia will become Geely Auto’s first production site in Europe. Although the wider Geely Holding organisation already has a substantial European presence through companies including Volvo Cars, Polestar, Lotus and LEVC, this will be the first European factory producing vehicles for the core Geely Auto brand.

European production can shorten delivery routes, make it easier to respond to regional demand and allow vehicles to be adapted more closely to local regulations and customer preferences.

It could also help reassure buyers who remain uncertain about newer Chinese brands. Manufacturing cars in Spain alongside Ford provides Geely with a degree of familiarity while strengthening the case that it is investing in European jobs, suppliers and long-term aftersales support.

The partnership may also reduce Geely’s exposure to European Union duties on electric vehicles imported from China.

The EU currently applies additional countervailing duties to Chinese-built electric cars following an investigation into state subsidies. Geely Group vehicles are subject to an additional rate of 18.8%, on top of the EU’s normal vehicle import duty, although individual arrangements and exemptions may be agreed in certain circumstances.

Producing cars within the EU could reduce the effect of those measures, depending on where components are sourced and how each vehicle meets European rules of origin.

It is worth noting that the EU’s additional duties do not automatically apply to cars imported into the UK. Britain operates its own trade and tariff system, so the immediate financial effect is more relevant to Geely’s sales within the European Union. However, increased production closer to the UK could still improve vehicle availability, logistics and parts supply for British customers.

Is this just badge engineering?

Shared development does not necessarily mean the new Ford and Geely vehicles will be identical cars with different badges.

Ford says the jointly developed crossover will be designed by Ford and engineered to provide the handling, capability and character expected from one of its vehicles. Geely’s two electric SUVs will remain separate Geely-branded products.

There may be common technology beneath the surface, including platforms, electrical systems, batteries, motors or software. That is already normal across the industry.

The Ford Ranger and Volkswagen Amarok share a great deal beneath their different designs. The Toyota GR86 and Subaru BRZ were developed together, while the Toyota Supra and BMW Z4 also share major components.

What matters to buyers is whether the finished vehicle feels distinctive, is competitively priced and provides a strong ownership experience.

Ford will need to ensure its new crossover genuinely drives and feels like a Ford. Geely must demonstrate that European production leads to better availability, stronger customer support and competitive pricing rather than simply changing the country shown on the manufacturer’s label.

A relationship that dates back to Volvo

It would be slightly misleading to describe Ford and Geely as having maintained a continuous manufacturing partnership since 2010.

Their relationship began when Ford sold Volvo Cars to Zhejiang Geely Holding Group in 2010. Volvo was given considerable independence under Geely’s ownership and has since expanded its model range, technology and global manufacturing presence.

Ford says the way Geely protected and developed Volvo helped establish the trust needed for this latest agreement.

Sixteen years after that sale, Ford and Geely are now coming together again, this time as manufacturing and development partners.

What does the Ford and Geely deal mean for UK buyers?

There are no confirmed UK prices, specifications or launch dates for the new Valencia-built models yet.

The joint venture must first receive regulatory approval, with operations expected to begin during the first half of 2027. New vehicle production is scheduled to follow in 2028.

The most likely immediate development for UK customers will be the arrival of the new Bronco-family SUV, followed by Ford’s jointly developed crossover and potentially Spanish-built versions of the Geely EX5.

For buyers, the real test will be whether sharing development and manufacturing costs results in better-value cars.

Partnerships are often explained using phrases such as efficiency, scale and competitiveness. Those benefits only matter to customers if they eventually translate into sensible prices, useful technology, strong reliability and good aftersales support.

My thoughts on the Ford and Geely partnership

I think this is a much more significant announcement than simply Geely building a few cars inside a Ford factory.

It shows how quickly the structure of the global motor industry is changing. European and American manufacturers still possess valuable brands, factories and engineering knowledge, but Chinese companies have become extremely strong in batteries, software, electric powertrains and rapid vehicle development.

Neither side needs to do everything alone.

Ford gains scale, technology and a better chance of making Valencia financially sustainable. Geely gains a credible and relatively quick route into European manufacturing. The factory and its workforce gain a clearer long-term production plan.

There will naturally be concerns about how much technology is shared, where components are sourced and whether established manufacturers risk losing their individual identities.

The answer will be found in the finished vehicles. If Ford can use shared technology while continuing to produce cars with distinctive styling and genuinely enjoyable driving dynamics, this could be a very sensible move.

Likewise, if European production helps Geely improve supply, pricing and customer confidence, it could accelerate the brand’s growth considerably.

For now, we know that the Ford Kuga will remain in production, a smaller Bronco-family SUV is coming, a new Ford and Geely crossover is being developed and two Geely electric SUVs will be built in Spain.

What we do not yet know is exactly how those vehicles will look, what they will cost or which versions will be offered in the UK.

Those details will determine whether this partnership simply makes sense in a boardroom or delivers genuinely better cars for European drivers.