Ford and Geely have formed a joint venture at the Valencia plant in Spain, where new energy vehicles such as the EX2 will be produced.
Ford Motor Company and Chinese automaker Geely have announced the formation of a new joint venture headquartered at Ford's plant in Valencia. This collaboration aims to leverage shared production capacity to develop and assemble new energy vehicles for both brands. Under the planned ownership structure, Ford will hold a 66% stake, while Geely will own 34%.
The agreement helps Ford accelerate its strategy in Europe, while also supporting Geely's rapid localization in this market. After completing legal formalities, the joint venture is expected to officially operate in the first half of 2027, with the first model rolling off the production line in 2028.
The two automakers have been negotiating cooperation for months, according to a Reuters report in February. Executives said the long-standing relationship stemming from Geely's acquisition of Volvo from Ford in 2010 has facilitated the talks.
Geely EX2, also known as Geely Xingyuan or Geome Xingyuan in China. Photo: Geely
Ford's Valencia plant—one of Europe's largest and most modern production facilities with a capacity of about 500,000 vehicles per year—will serve as the joint production hub. Converting this complex into a cooperation center allows both companies to optimize capacity, enhance product development efficiency, and reduce costs. This move is also expected to boost the local economy by creating additional jobs in the automation industry.
In addition to maintaining the current production line for the Ford Kuga, the joint venture will expand its product portfolio with a range of new models launching from 2028. These include an expansion of the Bronco line with a new compact off-road SUV.
A new Ford-branded crossover model will be introduced. The American automaker will handle design, while vehicle development will be carried out together with Geely.
The Chinese automaker will produce two new energy models there from 2028, including the EX2 (known as the Geely Xingyuan in the Chinese market)—currently among the company's best-sellers, according to CarNewsChina.
The cooperation agreement comes as Geely is experiencing strong growth in international markets. In the first half of 2026, Geely's overseas sales reached 474,000 vehicles, up 158% year-on-year.
Spain is a popular choice for Chinese automakers because it is Europe's second-largest automotive producer after Germany and has lower labor and energy costs. BYD, the world's largest electric vehicle manufacturer, said Spain is on its shortlist. Chinese automaker Leapmotor will produce an electric SUV at its joint venture partner Stellantis' plant in Zaragoza, and the premium brand Hongqi is in talks with Stellantis about producing cars at one of its plants in the country.
My Anh
