Geely and Ford are working together to make electric SUVs in Spain and come up with a new model for Europe
Geely and Ford are set to manufacture electric SUVs in Spain starting in 2028, while also collaborating on the development of a new crossover aimed at the European market.
Chinese automaker Geely Auto and Ford have unveiled a strategic partnership to produce electric sport utility vehicles (SUVs) at Ford’s Valencia plant in Spain. This collaboration signifies Geely’s inaugural manufacturing base in Europe, as both companies aim to enhance their foothold in the continent’s rapidly expanding electric vehicle market.
The agreement, announced on Thursday, will create a joint venture with Ford holding a 66% stake and Geely possessing the remaining 33%. The initial Geely-branded electric SUVs are anticipated to begin production at the Valencia facility in 2028.
Jim Baumbick, Ford’s president of Europe, stated that the partnership would greatly enhance operations at the Spanish facility, which has been functioning well below its production capacity.
“We possess the capability to significantly enhance the facility’s capacity.” “That’s the goal,” Baumbick stated to Reuters.
The agreement comes after extensive discussions between the two automotive companies and enhances a long-standing partnership that began with Geely’s purchase of Volvo Cars from Ford in 2010.
Geely Senior Vice President Victor Yang announced that the EX5 electric SUV will be the first model produced in Valencia, and it is already available in several European markets. A second Geely vehicle is currently in development.
Yang stated that creating a manufacturing presence in Europe is a crucial element of Geely’s international growth strategy, noting that collaborating with a seasoned partner such as Ford would bolster the company’s localization initiatives.
Alongside the production of Geely vehicles, the companies will collaborate on the development of a new crossover model, which will feature various powertrain options, including fully electric, plug-in hybrid, and extended-range electric variants. Production of the new model is set to commence in 2028.
The partnership arises as Chinese electric vehicle manufacturers hasten their efforts to set up production facilities in Europe in anticipation of proposed European Union regulations that mandate increased levels of locally sourced content in electric vehicles sold throughout the bloc.
Spain has emerged as a highly appealing destination for Chinese automakers, thanks to its established automotive industry, competitive labor costs, and comparatively lower energy prices in relation to various other European nations.
Ford is anticipated to gain advantages from the arrangement by increasing the utilization of its underused Valencia factory, which currently manufactures the Kuga SUV and has an annual production capacity of approximately 500,000 vehicles. Industry data indicate that the plant functioned at merely 26% of its capacity in 2025.
The US automaker is set to start manufacturing its Bronco SUV in Valencia in 2028. Baumbick noted that Geely’s involvement would enhance economies of scale and enable Ford to compete more effectively in the European market.
Industry experts say that the partnership is beneficial for both companies, helping Geely set up its first manufacturing plant in Europe and allowing Ford to reduce fixed costs and make better use of its extra production capacity.
The agreement highlights the growing trend of Chinese automakers shifting towards European production as they broaden their international reach, while established manufacturers are exploring innovative methods to optimize underutilized facilities and maintain their competitiveness in the fast-changing electric vehicle market.
