China's Geely to make EVs at Ford plant in Spain under new joint venture

A Ford logo is seen at the New York International Auto Show Press Preview, in Manhattan, New York City, on March 27, 2024.David Dee Delgado | ReutersChina automaker Geely will build electric vehicles at a Ford Motor plant in Spain under a new manufacturing joint venture in Europe, the companies announced Thursday.Pending regulatory approvals, the companies said the joint venture will begin operations in the first half of 2027, with the first new vehicles scheduled to roll off the line in 2028. The Valencia, Spain, plant will continue to produce the Ford Kuga in the meantime, according to a news release.The companies said Ford will own 66% of the joint venture, while Geely will have a 34% stake. The joint venture is expected to include a new electric crossover for Ford, in "addition to a new member of the Bronco family, plus two electric Geely SUVs, with production starting in 2028," the companies said.The announcement comes after months of reported talks between the two sides, as legacy automakers such as Ford attempt to compete with Chinese carmakers that have quickly been expanding into new markets outside of China for several years."The joint venture addresses the new realities of the European market -- intense global competition, relentless cost pressure and tightening regulation -- resetting Valencia to build at the industry's emerging cost benchmark," the companies said in the release.Executives with Ford Motor and China automaker Geely announce plans for a joint venture at the American automaker's plant in Valencia, Spain on July 23, 2026.Courtesy imageAutomakers such as Ford have historically partnered with Chinese companies for production and sales in China, however several legacy companies have been geographically broadening such tie-ups. Chrysler parent Stellantis has been expanding its yearslong partnership with China's Leapmotor into Europe, and Germany's Volkswagen has said it is open to sharing under-utilized European factories with Chinese car brands as part of a push to cut costs.Ford's new tie-up comes a day after a U.S. Senate committee approved legislation to toughen a ⁠ban on Chinese automakers entering its home country.Ford CEO Jim Farley, who has been complimentary of Chinese automakers for their speed and products, has previously said the automaker would be looking to partnerships to assist its global operations. Ford's partnership with Geely stretches back to 2010, when it sold Volvo Cars to Geely, the companies said."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," Alex Nan, vice president of Geely, said in the release.