Ford announces major new deal with Chinese car brand to produce Geely vehicles in Europe for first time

Ford has unveiled a new joint partnership with a Chinese automaker in a move that will see Geely manufacture vehicles in Europe for the first time.

The two car manufacturers plan to establish a manufacturing joint venture at Ford's existing plant in Valencia, Spain.

It will build both Ford and Geely vehicles, making it the Chinese brand's first manufacturing base in Europe.

The joint venture will begin operations in the first half of 2027, with new vehicles rolling off the production line in 2028, although this is subject to regulatory approvals.

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Ford's Valencia facility has a potential annual capacity of around 500,000 units, with hopes of it developing into a "shared, high-tech manufacturing hub".

Under the new joint venture, Geely Auto will own 34 per cent of the new entity, while Ford will own 66 per cent.

Geely said it would produce two new energy vehicles at the facility, with hopes of it rolling off the production line within the next two years.

The Hangzhou-based manufacturer has sold almost 475,000 vehicles in the first half of this year.

This represents a staggering 158 per cent year-on-year increase, making it one of the fastest-growing Chinese car brands in the world.

In the UK, Geely has sold 6,497 vehicles so far this year, capturing 0.57 per cent of the total market in less than a year on the market.

Geely is already outselling established marques, including Alfa Romeo, Mitsubishi, Smart and Subaru.

Alex Nan, Vice President of Geely Auto Group, said the partnership with Ford was "an open collaboration and mutually beneficial to both parties".

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He added: "It represents a milestone in Geely Auto's global development and will further solidify Geely’s presence in Europe.

"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."

Ford and Geely have had a successful working relationship since 2010, when the Blue Oval sold Volvo Cars to the Chinese manufacturer.

Both brands said they had a goal of creating quality products using cost-effective methods, while allowing customers to "choose their own path through the energy transition".

Jim Baumbick, president of Ford Europe, emphasised how the Valencia facility had been vital to the brand for almost 50 years, making some of the "most-loved cars in our history".

He continued, saying: "That's why we're building a flexible, cost-effective industrial system with a capable partner in Geely Auto.

"Together we can fully utilise a great 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."

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