Ford and Geely plan Spanish EV venture with 2028 production target

Ford Motor and China’s Geely plan to create a European manufacturing joint venture that will build electric vehicles at Ford’s plant in Valencia, Spain, the companies said Thursday. Ford will own 66% of the venture and Geely will hold 34%, giving the U.S. automaker majority control while bringing a fast-growing Chinese carmaker into its European production base.

The companies said the arrangement remains subject to regulatory approvals. If cleared, the joint venture is expected to start operating in the first half of 2027, with the first new vehicles scheduled for production in 2028.

Ford’s Valencia factory will continue making the Ford Kuga before the new models begin, according to the companies’ release. The site is therefore set to remain part of Ford’s current European vehicle network while being prepared for the additional electric-vehicle work planned under the partnership.

European production through a shared entity

The deal uses a joint-venture structure, under which two automakers own stakes in a separate operating company rather than one party acting only as a supplier or contract manufacturer. In this case, Ford’s 66% holding gives it the larger economic interest, while Geely’s 34% stake gives the Chinese group direct exposure to the European manufacturing project.

The companies did not disclose investment amounts, planned production volumes, vehicle names or pricing. They also did not provide details on how responsibilities for engineering, procurement or distribution will be divided between Ford and Geely.

For Geely, the plan would place vehicle production inside an established Ford facility in the European Union. For Ford, the agreement adds an outside partner at a time when incumbent automakers are under pressure from Chinese manufacturers that have expanded into markets beyond China in recent years.

Partnership builds on earlier ties

Ford and Geely said their corporate relationship dates to 2010, when Ford sold Volvo Cars to Geely. The latest arrangement follows months of media reports that the two companies had been in talks about a production partnership.

Ford Chief Executive Jim Farley has previously praised Chinese automakers for the speed at which they develop products and for the vehicles they have brought to market. He has also said Ford would look to partnerships to support its global operations, according to prior comments cited in the companies’ announcement.

The European plan was announced one day after a U.S. Senate committee approved legislation intended to toughen a ban on Chinese automakers entering the U.S. market. That political backdrop underscores the diverging treatment of Chinese automotive groups across major markets, as Europe remains a key arena for competition among electric-vehicle producers.

The companies framed the Spanish venture as a manufacturing partnership, rather than a broader merger or acquisition. Its launch timetable now depends on regulatory review, with operations planned for 2027 and vehicle output targeted for the following year.

This story draws on original reporting from CNBC.