Geely makes major European push, to build 2 new models at Ford's Valencia plant from 2028

Geely's expansion into Europe has reached another major milestone as the company announced that it has joined forces with Ford to establish a manufacturing hub at Ford's Valencia plant in Spain.

The joint venture will see Geely holding a 34% stake and Ford the remaining 66%, with both companies sharing production capacity to build multi-energy vehicles for their respective brands for the European market.

Pending regulatory approvals, the joint venture is expected to begin operations in the first half of 2027, while production of the first vehicles is scheduled to commence in 2028.

No model details have been disclosed thus far, but Geely has confirmed that it plans to manufacture 2 new models at the Valencia plant, which could include hybrid (HEV), plug-in hybrid (PHEV) or battery electric (BEV) models.

The move supports the company's international expansion plans following overseas sales of 474,228 vehicles in the first half of 2026, representing an impressive 158% year-on-year increase.

Ford's Valencia facility is one of the company's largest manufacturing plants in Europe, with an annual production capacity of around 500,000 vehicles. Established in 1976, the plant has produced models such as the Fiesta, Focus, Orion, Transit and the current Kuga, primarily for European and North American markets.

Geely and Ford have a history of collaboration, dating back to 2010 when Ford sold Volvo Cars to Geely. The latest partnership is expected to improve factory utilisation while allowing both companies to share development and manufacturing costs.

"This strategic cooperation with Ford is an important step towards open collaboration and mutually beneficial to both parties. It represents a milestone in Geely Auto's global development and will further solidify Geely's presence in Europe," said Alex Nan, Vice President of Geely Auto Group.

Ford Europe President Jim Baumbick added: "We're building a flexible, cost-effective industrial system with a capable partner in Geely Auto. Together we can fully utilize a great plant with a great workforce and match the industry's new cost benchmark."