Ford and Geely Form Strategic Alliance for European Production and New Bronco Model

Ford and China's Geely announced a new joint venture on Thursday to manufacture new energy vehicles for the European market at Ford's Valencia plant in Spain. The agreement follows rumors initially reported in May by Spanish media outlet La Tribuna de Automoción, which claimed the two automakers were in very advanced talks to co-produce vehicles at the facility.

Under the proposed agreement, which remains subject to clearing a few regulatory hurdles, Ford will hold a 66% stake in the new joint venture, while Geely will own the remaining 34%. The alliance aims to utilize underutilized capacity at the Valencia facility, with the potential to produce approximately 500,000 vehicles annually. By pooling production volume, Ford and Geely plan to lower the cost of every vehicle built at the plant to compete against lower-priced EVs from Chinese rivals such as BYD and MG.

New Vehicles and Architecture

The joint venture will develop, engineer, and manufacture Ford and Geely electric and plug-in hybrid vehicles specifically tailored for European buyers. Under the plan, Ford will build a new multi-energy electric crossover set to arrive in 2028. This crossover is expected to utilize Geely's GEA (Global Intelligent Electric Architecture) platform and feature expected electric vehicle (EV) and plug-in hybrid (PHEV) variants.

Separately, Ford will produce a new tough, compact, adventure-ready Bronco model at the Valencia facility. Ford previously stated that this new Bronco model will be offered across different multi-energy powertrains, including a PHEV variant.

Geely plans to produce two new electric SUVs at the Valencia plant. One of these models is expected to be the E2, which is a rebadged version of the EX2—China's best-selling electric car in 2025.

Production Timeline and Strategy

If approved, Ford and Geely will commence manufacturing at the facility in the first half of 2027, with the initial vehicles scheduled to roll off the production line in 2028. Ford confirmed that the Kuga, currently one of Europe's top-selling plug-in hybrids, will remain in production at the Valencia plant in the meantime.

"We chose a partner willing to invest alongside us in European manufacturing and to compete on a level playing field, building in Europe, for Europe, and playing by the same rules we do," said Jim Baumbick, president of Ford Europe. "We don’t have time to wait for policymakers to finish debating reforms. We are acting now to build a competitive industrial system that strengthens European manufacturing rather than sidesteps it."

Broader Implications

Ford suggested the joint venture could extend beyond vehicle assembly to deliver outstanding digital experiences. Earlier this year, a Reuters report claimed that Ford and Geely held discussions regarding technology sharing, including automated driving and advanced driver-assistance systems (ADAS).

The partnership allows Ford to access Geely’s platforms, software, and related technologies while utilizing spare capacity at Valencia. This move aligns with Ford's strategy of leaning into partnerships, including existing collaborations with Volkswagen and Renault, to revamp its brand in Europe.

For Geely, localized European assembly provides a base to accelerate its global expansion while avoiding the European Union's 18.8% tariffs on imported electric vehicles from China.