FORD AND GEELY AUTO JOIN FORCES IN EUROPE TO PRODUCE NEXT-GENERATION MULTI-ENERGY VEHICLES IN SPAIN

Rhea-AI Summary

Ford (NYSE:F) and Geely Auto agreed to form a Europe-focused manufacturing joint venture at Ford's Valencia, Spain plant to build multi-energy passenger vehicles for European markets. The JV aims to maximize the site’s potential annual capacity of about 500,000 vehicles, lowering per‑vehicle costs amid intense regional competition and regulation.

Pending regulatory approvals, operations are expected to start in the first half of 2027, with new models rolling off the line in 2028. Ford will own 66% of the JV and Geely Auto 34%. Valencia will continue producing the Ford Kuga and later add an all‑new multi‑energy crossover and a compact Bronco‑family SUV for Ford, plus two Geely‑branded electric SUVs. According to Ford, the venture supports its plan to introduce five new multi‑energy vehicles in Europe by 2029 and supports Geely Auto’s international expansion, which included 474,228 overseas vehicle sales in the first half of the year.

Positive

• 66% JV ownership gives Ford majority control over the new entity
• ~500,000-vehicle potential annual capacity at Valencia to be better utilized
• Production of multiple new Ford models in Valencia starting in 2028
• JV underpins Ford plan for five new multi-energy vehicles in Europe by 2029
• Geely overseas sales of 474,228 vehicles in H1 support partner scale benefits

Negative

• None.

News Market Reaction – F

-1.87%

-1.87% Session close to close

In the Jul 23 session, F declined 1.87%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

Ford’s recent insider record showed Net Buying through one director’s 10,600-share purchase. That pl...

Analysis

Ford’s recent insider record showed Net Buying through one director’s 10,600-share purchase. That platform context accompanies an effective S-3ASR shelf with zero usage; later filings can clarify execution and financing disclosures.

Key Figures

JV operations: First half of 2027 First vehicle production: 2028 Annual plant capacity: 500,000 vehicles +4 more

7 metrics

JV operations First half of 2027 Pending regulatory approvals

First vehicle production 2028 Valencia joint venture

Annual plant capacity 500,000 vehicles Potential annual capacity at Valencia

Ford ownership 66% Proposed ownership structure of the new entity

Geely ownership 34% Proposed ownership structure of the new entity

European vehicle rollout Five vehicles by 2029 Ford multi-energy vehicle product offensive

Overseas sales 474,228 vehicles Geely Auto overseas sales in the first half of the year

Historical Context

5 past events · Latest: Jul 21 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 21	Workforce alliance	Positive	+2.0%	Ford launched a skilled-trades training alliance with BlackRock, Carhartt, and Google.
Jul 01	Earnings scheduling	Neutral	-1.9%	Ford scheduled its Q2 2026 financial results release and investor conference call.
Jun 25	Quality ranking	Positive	+1.9%	Ford ranked first among mainstream brands in the 2026 U.S. Initial Quality Study.
Jun 03	Vehicle launch	Positive	-2.4%	Ford unveiled the Bronco Filson premium SUV with orders scheduled for fall 2026.
May 19	Leadership transition	Neutral	+1.3%	Ford announced a marketing leadership transition effective June 1, 2026.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Ford’s recent news reactions were mixed, with both positive and negative 24-hour outcomes.

Key Terms

joint venture, powertrain, plug-in hybrid

3 terms

joint venture financial

"announced an agreement to form a Europe-focused joint venture"

A joint venture is when two or more companies team up to work on a specific project or business idea, sharing both the risks and the rewards. It’s like friends starting a lemonade stand together—each contributes resources and they split the profits, making it easier to succeed than going alone.

powertrain technical

"offer them choice in powertrain technology"

Powertrain is the collection of parts that generate and deliver motion in a vehicle — typically the engine or electric motor, transmission, driveshafts, axles and related control systems or batteries in electric models. It matters to investors because powertrain design and efficiency drive fuel economy, performance, production cost, regulatory compliance and warranty risk, all of which affect a maker’s competitiveness, profit margins and exposure to supply-chain or technology shifts; think of it as the vehicle’s heart and muscles.

plug-in hybrid technical

"one of Europe's favorite plug-in hybrids"

A plug-in hybrid is a type of vehicle that combines a traditional gasoline engine with an electric battery that can be recharged by plugging it into an external power source. This allows the car to run on electric power alone for short distances, reducing fuel use and emissions. For investors, plug-in hybrids represent advances in clean transportation technology that could influence automotive markets and environmental policies.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• The global automakers plan to form a manufacturing joint venture at Ford's Valencia, Spain, plant, combining scale and factory utilization, to build Ford and Geely vehicles
• The partnership, built on a foundation of trust and shared business principles, secures the future of the Valencia plant, provides long-term stability and creates the potential for future high-tech manufacturing job growth
• 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
• The Valencia plant will produce a new generation of low- and zero-emission vehicles for European markets, offering customers an outstanding technology experience
• The joint venture is expected to produce an all-new multi-energy crossover for Ford, in addition to a new member of the Bronco family, plus two electric Geely SUVs, with production starting in 2028. Kuga production continues uninterrupted
• The collaboration accelerates Geely Auto's European expansion, and supports Ford's product offensive to bring five new passenger vehicles to European showrooms by 2029

VALENCIA, Spain, July 23, 2026 /PRNewswire/ -- Ford Motor Company and Geely Automobile Holdings (hereafter "Geely Auto") today announced an agreement to form a Europe-focused joint venture (JV) at Ford's Valencia, Spain, manufacturing hub.

The new JV will manufacture Ford and Geely multi-energy passenger vehicles for the European market, driving greater choice and value for European drivers.

Europe is home to one of the fiercest competitive battles in the global automotive industry today. Tightening regulation, high operating costs and a new generation of global competitors have reset the industry's benchmark for manufacturing cost, vehicle technology and software experience.

By pooling production volume, Ford and Geely will maximize the capacity of the Valencia plant, lower the cost of every vehicle built there, and compete at this emerging cost standard while delivering world-class multi-energy vehicles and strengthening the local Valencia economy in the process.

Pending regulatory approvals, the joint venture will begin operations in the first half of 2027, with the first new vehicles scheduled to roll off the line in 2028. The Valencia plant will continue to produce the Ford Kuga in the meantime.

"This JV with Ford in Europe reflects our commitment to open, collaborative product development as part of our growth strategy, deepening our local presence and commitment to customers in Europe", said Alex Nan, Vice President of Geely Auto Group. "We are dedicated to delivering vehicles that European customers will choose on merit: on industry leading features, on high-quality and on actively contributing to Europe's green future. Put simply: we are building cars in Europe, for Europe, alongside a trusted partner."

Ford's partnership with Geely is built on a foundation of trust and respect stretching back to 2010 when Ford sold Volvo Cars to Geely and watched it protect and revitalize the brand. Both companies share a commitment to quality, cost-efficient sourcing and continuous improvement, as well as a belief that customers should be able to choose their own path through the energy transition.

Transforming Valencia into a Powerhouse for Low-CO2 Mobility

The JV will transform Ford's Valencia facility – already one of Europe's most productive and advanced plants, with a potential annual capacity of about 500,000 vehicles – into a shared, high-tech manufacturing hub built to compete at the industry's new global cost standard. The plant has been at the leading edge of the European market since it opened in 1976, when it built the original Ford Fiesta, Ford's first global front-wheel-drive car, and a major success. Ford was the first non-Spanish automaker to build in Valencia, the start of a partnership with Spain and its people that remains as strong today.

Under the proposed ownership structure, Ford will own 66% of the new entity and Geely Auto 34%.

An Exciting Vehicle Lineup

"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", said Jim Baumbick, President, Ford of Europe. " 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. This is all part of Ford's vision to give European drivers rally-bred handling, true off-road capability and multi-energy technology, with a distinct Blue Oval DNA."

The JV will combine the engineering, manufacturing and development know-how of two of the world's leading automakers to build both Ford and Geely low- and zero-emission passenger vehicles. The cars will be tailored for European drivers and will offer them choice in powertrain technology, as well as outstanding digital experiences.

Ford Models:

• The Popular Ford Kuga: Production of the Ford Kuga -- one of Europe's favorite plug-in hybrids -- will continue uninterrupted in Valencia.
• A Rugged New Bronco: Valencia will also produce a new member of the global Bronco family - a tough, compact, adventure-ready SUV built for European roads, with production starting in 2028.
• An All-New Crossover: A multi-energy family crossover, designed by Ford and jointly developed with Geely will arrive in 2028. Engineered with Ford's signature capabilities and driving dynamics, it is part of an aggressive product offensive that will bring five new multi-energy vehicles to Europe by 2029.

Geely Models:

• Sleek Electric SUVs: Geely Auto plans to produce two electric SUVs at the Valencia facility in full support of their European focus and growth strategy. The first Geely-branded models to be manufactured under this joint venture are scheduled to roll off the production line in 2028.

The venture supports Geely Auto's international expansion, following overseas sales of 474,228 vehicles in the first half of the year, while advancing Ford's strategy of using partnerships to compete with speed, efficiency and scale in Europe.

"This partnership shows how automakers are strengthening Europe's industrial base, but we can't do it alone," said Jim Baumbick. "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."

About Ford Motor Company

Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where every person is free to move and pursue their dreams. The company's Ford+ plan for growth and value creation combines existing strengths, new capabilities, and always-on relationships with customers to enrich experiences for customers and deepen their loyalty. Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, along with connected services, including BlueCruise (ADAS) and security. The company offers freedom of choice through three customer-centered business segments: Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough electric vehicles ("EVs") along with embedded software that defines always-on digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs. Additionally, the company provides financial services through Ford Motor Credit Company. Ford employs about 168,000 people worldwide. More information about the company and its products and services is available at corporate.ford.com.

About Geely Auto Group

Geely Auto Group is a leading global automotive company headquartered in Hangzhou, China. Part of Zhejiang Geely Holding Group, Geely Auto Group develops and manufactures passenger vehicles under the Geely, Lynk & Co, and Zeekr brands.

Geely Auto achieved cumulative sales of 3,024,567 units in 2025, exceeding the full-year sales target with a year-on-year growth of 39%. New energy vehicle (NEV) sales reached 1,687,767 units, a year-on-year increase of 90%.

With a strong focus on technology innovation, electrification, and sustainable mobility, Geely Auto Group operates world-class R&D centers and manufacturing facilities across China, Europe, and key international markets. The Group is committed to delivering safe, high-quality, and intelligent vehicles enabled by advanced technologies such as hybrid powertrains, full-electric architectures, smart connectivity, and autonomous driving systems.

As a global company, Geely Auto Group continues to expand its international presence through strategic partnerships, localized operations, and industry-leading platforms. Geely strives to create mobility solutions that are greener, smarter, and more accessible, driving forward the future of sustainable transportation.

Ford news releases, related materials, photos and video, visit From the Road, www.fordmedia.eu or www.media.ford.com.
Follow www.linkedin.com/company/ford-in-europe, www.youtube.com/FordNewsEurope, www.instagram.com/FordNewsEurope,
www.threads.net/@fordnewseurope and www.tiktok.com/@FordNewsEurope

 

 

 

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SOURCE Ford

FAQ

What is the Ford (F) and Geely Auto joint venture announced for Valencia, Spain in 2026?

Ford and Geely Auto plan a Europe-focused manufacturing joint venture at Ford’s Valencia plant. According to Ford, the JV will build multi-energy passenger vehicles for Europe, pooling volume to maximize plant capacity, lower per-vehicle costs and enhance technology offerings.

When will the Ford (F) and Geely Auto Valencia joint venture start operations and vehicle production?

According to Ford, the joint venture is expected to begin operations in the first half of 2027. The first new Ford and Geely vehicles from the Valencia, Spain plant are scheduled to roll off the production line in 2028, following regulatory approvals.

Which Ford vehicles will be built in Spain under the new Ford (F) and Geely Auto joint venture?

The JV will continue building the Ford Kuga and add a new Bronco-family SUV and an all-new multi-energy crossover. According to Ford, these models will start production in Valencia from 2028 and support its broader European product offensive.

What Geely Auto models will be produced at Ford’s Valencia plant under the 2026 JV?

Geely Auto plans to produce two electric SUVs at the Valencia facility. According to Geely Auto, these will be the first Geely-branded models manufactured under the joint venture, with production targeted to start in 2028 as part of its European growth strategy.

How is ownership of the Ford (F) and Geely Auto joint venture in Valencia structured?

According to Ford, the proposed ownership structure gives it 66% of the new JV and Geely Auto 34%. This majority position lets Ford retain primary control while leveraging Geely’s engineering, development and international expansion experience within the European market.

How does the Ford (F) and Geely Auto Valencia JV support Ford’s European strategy?

The JV supports Ford’s plan to introduce five new multi-energy vehicles in Europe by 2029. According to Ford, combining capacity, cost efficiencies and shared engineering at Valencia helps it compete at Europe’s emerging cost benchmark and enhance its low- and zero-emission lineup.

What is the production capacity of Ford’s Valencia plant in the new JV with Geely Auto?

According to Ford, the Valencia plant already has a potential annual capacity of about 500,000 vehicles. The joint venture aims to better utilize this capacity by pooling Ford and Geely volumes, helping lower unit costs and support long-term industrial stability in Spain.