Ford and Geely Form Joint Venture to Build Multi-Energy Vehicles at Spain's Valencia Plant

Overview

Ford Motor Company and Geely Auto announced on July 23, 2026 that they will form a joint venture at Ford’s manufacturing plant in Valencia, Spain, to build a new generation of “multi-energy” vehicles under both brands, according to the joint press release. Ford will hold 66% of the new entity and Geely Auto the remaining 34%, according to the press release, a split confirmed by CleanTechnica, Geely’s own announcement, WardsAuto and Automotive Logistics.

What We Know

• The Valencia plant has a potential annual capacity of approximately 500,000 vehicles, according to the press release, a figure repeated by CleanTechnica and Geely.
• The joint venture is expected to begin operations in the first half of 2027, with Geely’s release stating production of new vehicles will start in 2028, a timeline also reported by Automotive Logistics.
• Three Ford-branded multi-energy vehicles and two electric Geely-branded models are planned for the line, according to Geely’s announcement. WardsAuto reports the Ford lineup includes a new Bronco compact SUV and a new multi-energy crossover, while the existing Ford Kuga will continue rolling off the Valencia line, according to the press release.
• Valencia has built Ford vehicles since 1976, starting with the original Ford Fiesta, according to the press release.
• Jim Baumbick, President of Ford of Europe, said: “For nearly 50 years, Valencia has built some of the most-loved cars in our history, and now this team will help build our future. That’s why we’re building a flexible, cost-effective industrial system with a capable partner in Geely Auto. Together we can fully utilize a best-in-class plant with a great workforce and match the industry’s new cost benchmark,” according to the press release. The opening line of that statement was also carried by CleanTechnica and Geely.
• Baumbick added: “What we’ve achieved in Valencia, with the ongoing support of Spain’s national and regional governments, is a masterclass in public-private partnership that sets the benchmark for the rest of Europe,” according to the press release, a quote also reported by WardsAuto and Automotive Logistics.
• Alex Nan, Vice President of Geely Auto Group, said the venture reflects “our commitment to open, collaborative product development as part of our growth strategy,” adding: “Put simply: we are building cars in Europe, for Europe, alongside a trusted partner,” according to the press release, a statement also carried in full by Automotive Logistics.
• Ford has said it plans to bring five new passenger vehicles to European markets by 2029, according to CleanTechnica and Automotive Logistics.
• Geely reported overseas sales of 474,228 vehicles in the first half of 2026, according to the press release, a figure also cited by Geely’s own announcement and Automotive Logistics.
• Ford employs about 168,000 people worldwide, according to the press release.

What We Don’t Know

The companies have not disclosed the financial terms of the joint venture or the total investment committed to the Valencia plant. Pricing, naming and full specifications for the new Bronco variant, the multi-energy crossover, and the two Geely electric SUVs have not been announced. The joint venture remains subject to regulatory approval before operations begin.

Analysis

The deal pairs Ford’s existing European manufacturing footprint with Geely’s expanding overseas sales base, letting both companies spread fixed costs across a shared plant rather than building separate capacity. For Ford, it supports a stated goal of launching five new vehicles in Europe by 2029 without funding an entirely new factory. For Geely, it provides a foothold for local, EU-based production of its electric SUVs at a moment when the company has reported growing overseas sales volumes, as detailed in the press release.