Geely to Build EVs at Ford’s Spain Plant Under New Joint Venture
Partnership strengthens European production as Geely prepares local EV manufacturing
Geely Auto and Ford have announced a new joint venture that will see Geely produce electric SUVs at Ford’s Valencia plant in Spain, marking Geely’s first manufacturing facility in Europe.
Under the agreement, Ford will hold a 66% stake in the joint venture while Geely will own the remaining 34%. The partnership will begin production in 2028, with the first locally built model confirmed as the Geely EX5 electric SUV. A second Geely EV, currently under development, will also be produced at the Spanish facility.
Beyond vehicle production, both companies will jointly develop a new crossover SUV for the European market. The model is expected to be offered with multiple powertrain options, including fully electric, plug-in hybrid, and extended-range EV variants.
The collaboration comes as Chinese automakers accelerate efforts to establish manufacturing operations in Europe ahead of stricter local-content requirements expected under future European Union regulations. Producing vehicles within Europe is expected to help manufacturers remain competitive while complying with upcoming “Made in Europe” requirements.
For Ford, the partnership provides an opportunity to better utilise its Valencia factory, which has significant unused production capacity. The plant currently produces the Ford Kuga SUV and is also scheduled to begin manufacturing the Ford Bronco in 2028. Ford confirmed that its existing Valencia workforce will transition to the new joint venture, with additional hiring likely as production expands.
Geely said the partnership builds on its long-standing relationship with Ford following Geely’s acquisition of Volvo Cars from Ford in 2010. The company also confirmed it has no plans to relocate workers from China, instead relying on local expertise and suppliers to support production.
The agreement reflects a broader trend of collaboration between established European manufacturers and Chinese automakers, with Spain emerging as a preferred manufacturing location due to its competitive production costs and established automotive supply chain. The move is expected to strengthen Geely’s presence in Europe while supporting Ford’s efforts to maximise production efficiency in the region.
