Ford to partner with Chinese automaker Geely to manufacture vehicles in Spain

At this late hour, the “Western” automakers’ only chance of long-term survival is to partner with Chinese firms. The European brands grudgingly accepted this some time ago, and now Ford is turning down that road, announcing plans for a joint venture with Geely Auto.

The JV, which will be owned two-thirds by Ford and one-third by Geely, will manufacture “low- and zero-emission vehicles” at Ford’s factory in Valencia, Spain.

Ford has been losing ground in Europe for years—the Valencia factory has an annual capacity of 500,000 vehicles, but production fell below 100,000 in 2025.

The new JV sounds more like a strategy to share resources and cut costs in a market in which Ford has been faltering, rather than the emergency infusion of EV technology that the company really needs. At the Spanish plant, Ford plans to continue production of its Kuga PHEV, and to begin producing a new (presumably gas-powered) SUV in 2028 the Associated Press reports. Geely plans to build two new electric SUVs, the first of which is also to begin production in 2028.

“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,” a release from the two companies said.

“This deal offers a road map for how traditional automakers can survive and thrive in Europe,” Jessica Caldwell, Head of Insights at auto research firm Edmunds, told the AP. “Ford gets the scale and cost efficiencies it needs for its Valencia plant, while Geely gets a direct shortcut around EU tariffs. More broadly, it underscores a major industry shift we’re likely to continue seeing: automakers can no longer go it alone and must collaborate with rivals—Chinese or otherwise—to survive the capital-intensive transition to electrification.”

“While Chinese automakers like Geely continue their growth around the world, Ford should take this opportunity to learn how to cut costs and develop lower-priced vehicles,” said Sam Fiorani, VP at AutoForecast Solutions.

Source: AP