Ford and Geely plan EV venture at Spanish factory

Ford and China’s Geely are teaming up to build electric vehicles in Spain, a deal that gives investors a fresh look at how established automakers are trying to compete with fast-growing Chinese rivals. The plan also puts Ford’s Valencia factory at the center of a European EV push, pending regulatory signoff.

The companies said Thursday that they will form a manufacturing joint venture in Europe to produce electric vehicles at Ford’s plant in Valencia, Spain. A joint venture is a business owned by two or more companies, usually set up so the partners can share costs, capacity, technology or market access.

Ford will own 66% of the venture, while Geely will hold the remaining 34%, according to the companies’ announcement. The structure gives Ford majority control while bringing in a Chinese automaker that has expanded well beyond its home market.

Production timeline

The companies said the venture is expected to begin operations in the first half of 2027, subject to regulatory approvals. The first new vehicles are scheduled to come off the production line in 2028.

Ford’s Valencia plant will keep building the Ford Kuga in the meantime, according to the companies’ release. That detail matters for workers, suppliers and investors watching factory utilization, which measures how much of a plant’s capacity is actually being used.

For Ford, using an existing European plant may help it add new EV production without starting from scratch. For Geely, the arrangement gives it manufacturing access inside Europe through a partner with a long-established regional footprint.

Why Ford is working with Geely

The deal comes after months of reported talks between the companies, CNBC reported. It also lands as traditional carmakers face tougher competition from Chinese manufacturers that have been moving into overseas markets for several years.

Chinese automakers have built a reputation for quick product cycles and competitive electric vehicles. Ford CEO Jim Farley has previously complimented Chinese automakers for their speed and products, CNBC reported, and has said Ford would look to partnerships to support its global operations.

The two companies also have a history. Ford sold Volvo Cars to Geely in 2010, according to the companies.

A deal with political context

The announcement arrived one day after a U.S. Senate committee approved legislation aimed at tightening a ban on Chinese automakers entering the U.S., CNBC reported. That political backdrop highlights how differently the U.S. and Europe are treating Chinese carmakers and their role in global auto supply chains.

Ford and Geely did not say in the announcement which specific models will be built at the Valencia plant. They also did not disclose financial terms beyond the ownership split.

For retail investors, the key takeaway is operational rather than speculative: Ford is choosing a partner-based approach in Europe, while Geely is gaining another route to produce vehicles outside China. The deal still needs regulatory approval before the new venture can begin work.

This story draws on original reporting from CNBC.