Ford and Geely launch joint venture at Ford’s Spain plant to build four new models by 2028

Ford Motor Co. and Geely Automobile Holdings have agreed to form a 67-33 joint venture at Ford’s underused plant near Valencia, Spain, to co-develop and produce four new electric and internal-combustion models starting in 2028. Ford will hold a two-thirds stake in the venture, with Geely taking the remaining one-third. The collaboration aims to slash vehicle costs through shared production and purchasing as Chinese brands expand in Europe and competition intensifies. The first cars will roll off the line in 2028, while Ford’s existing Kuga crossover production at the Almussafes facility will continue uninterrupted. The venture is expected to begin operations in the first half of 2027, pending regulatory approval. Ford and Geely will jointly develop a Ford-branded crossover and a compact Bronco SUV tailored for European roads, both offered with multiple powertrain options. Geely will also build two fully electric SUVs at the plant, expanding its European manufacturing footprint alongside Volvo, Polestar, Zeekr, and Lynk & Co. The deal underscores the push to localize production for the EU market amid tightening regulations and cost pressures. Spanish Prime Minister Pedro Sanchez hailed the venture as proof of Spain’s ability to attract major investments and participate in the transformation of mobility. The Almussafes plant, once Ford’s largest outside the U.S., currently operates at less than a quarter of its 450,000-vehicle annual capacity. The collaboration reflects a broader trend of European automakers partnering with Chinese firms to access cheaper technology and fill factories, while Chinese brands seek local manufacturing bases to bypass EU tariffs on EV imports. MG and BYD together accounted for 5.4% of European car registrations last month, up from 3.4% a year earlier. Similar joint ventures are underway at Stellantis plants in Zaragoza and Madrid with Leapmotor. Ford also plans to introduce five new passenger vehicles in Europe by 2029 under this partnership.