Ford and Geely Team Up in Spain to Build Europe’s Next Generation of Multi-Energy Vehicles

Ford Motor Company (NYSE: F) and Geely Auto have agreed to form a Europe-focused joint venture at Ford’s Valencia plant in Spain. The new partnership is designed to manufacture Ford- and Geely-branded vehicles for the European market, while also helping secure the future of the Valencia site.

 Why it matters

For Ford, the deal supports a major production hub in Europe and keeps Kuga production running without interruption. For Geely Auto, it creates a manufacturing base inside the European Union, which may help the company expand more efficiently in the region. In simple terms, both companies are using shared capacity to lower costs and better match production with demand.

 Vehicles planned

The joint venture is expected to begin operations in the first half of 2027, pending regulatory approval, with first vehicle production scheduled for 2028. Ford plans to build a new multi-energy crossover and a new Bronco model in Valencia, while Geely Auto plans to produce two electric SUVs there as well. The companies say the plant could eventually support around 500,000 vehicles a year.

 Investor takeaway

This is a strategic move, not just a factory deal. Ford is strengthening its European footprint while Geely Auto gains direct access to an EU production base at a time when tariffs and market access matter more than ever. For investors, the key point is that both companies are trying to improve scale, reduce cost pressure, and position themselves for a more competitive European auto market.