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Ford and Geely Form 66/34 Joint Venture to Run Valencia Plant

The joint venture will restore output at Valencia, allow Geely to produce inside the EU to avoid China‑origin EV tariffs, lower unit costs, require regulatory approval.

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FILE - A Ford logo is seen on the grille of an unsold vehicle at a Ford dealership, Nov. 2, 2025, in Littleton, Colo. (AP Photo/David Zalubowski, File)
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Overview

  • Ford and Geely announced the joint venture on Thursday, July 23, with Ford taking a 66 percent stake and Geely 34 percent to operate the Almussafes (Valencia) factory.
  • The partners say the plant will keep building the Ford Kuga while the JV readies production of five vehicles targeted for 2028, including a new Ford Bronco, a Ford multi‑energy crossover co‑developed with Geely, and two Geely electric SUVs.
  • The companies expect JV operations to start in the first half of 2027 pending competition and regulatory clearances and aim to lift Valencia toward its roughly 500,000 annual capacity to cut per‑vehicle costs.
  • Spanish unions and the government welcomed the investment for jobs and plant stability, while U.S. politicians raised security and supply‑chain concerns over Chinese participation and are scrutinizing the deal.
  • The partnership reflects a broader industry shift where Chinese automakers localize European production to avoid tariffs and legacy manufacturers use joint ventures to share platforms, supply chains and development costs.