Ford Motor Company and Geely Automobile Holdings have announced plans to establish a new joint venture in Valencia, Spain, that will produce passenger vehicles for the European market.

The partnership aims to manufacture multi-energy models for both brands, helping expand customer choice while improving production efficiency in one of the world's most competitive automotive markets. 

The two automakers said the agreement comes as Europe's automotive industry faces increasing pressure from stricter regulations, rising manufacturing costs, and the arrival of new global competitors. By sharing production at Ford's Valencia manufacturing facility, both companies expect to reduce costs, maximize plant utilization, and remain competitive while continuing to build vehicles locally.

"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," said Alex Nan, vice president of Geely Auto Group. "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."

Through the new venture, Ford and Geely hope to strengthen the Valencia manufacturing hub while improving economies of scale for future vehicle production. The companies believe the collaboration will help them deliver competitive, high-quality vehicles tailored for European customers while supporting local jobs and the region's automotive industry.

Subject to regulatory approvals, the joint venture is expected to begin operations in the first half of 2027. The joint venture is expected to produce an all-new multi-energy crossover for Ford, in addition to a new member of the Bronco family, plus two electric Geely SUVs, with production starting in 2028. Until then, Ford said its Valencia plant will continue manufacturing the Ford Kuga.