en.Wedoany.com Reported - On July 23, Geely Automobile Holdings Limited (0175.HK, "Geely Auto") and Ford Motor Company ("Ford") reached an agreement to establish a joint venture at Ford's Valencia plant in Spain. Through capacity sharing, the joint venture will produce new energy vehicles under both the Geely and Ford brands for the European market, accelerating Geely's localized strategy in Europe and promoting economic development in the Valencia region.
Subject to regulatory approval, the joint venture is expected to commence operations in the first half of 2027, with the first new model rolling off the production line in 2028.
Ford's Valencia plant, with an annual production capacity of approximately 500,000 vehicles, is one of Europe's largest and most technologically advanced automotive manufacturing facilities. Following the establishment of the joint venture, the Valencia plant will become a shared advanced manufacturing center, significantly improving capacity utilization and product development efficiency while reducing development costs. It will also create more job opportunities for Spain's automotive industry and support the sustainable development of the regional automotive sector.
According to the plan, Geely Auto will produce two new energy vehicle models at the Valencia plant, with the first vehicle rolling off the line in 2028, fully supporting Geely's strong overseas market growth momentum. In the first half of 2026, Geely Auto's overseas sales reached 474,000 units, a year-on-year increase of 158%, making it one of the fastest-growing Chinese automotive companies in overseas markets.
The partnership between Geely and Ford has a long history. Since Geely Holding acquired Volvo Cars from Ford in 2010, Ford has witnessed Geely's efforts to protect and revitalize the Volvo brand. Geely and Ford have long maintained mutual respect and trust, consistently adhering to the principles of high-quality manufacturing, efficient supply chain management, and continuous improvement. During the new energy transition, both parties will prioritize user needs to drive product and technological innovation, achieving win-win cooperation.
Nan Shengliang, Vice President of Geely Auto Group, stated: "This strategic cooperation with Ford is an important step toward open collaboration and mutual benefit, as well as a milestone in Geely Auto's globalization efforts. It will further solidify Geely's localized presence in Europe. In the future, Geely will leverage its safe, low-carbon, high-quality products and leading new energy technology advantages to establish a strong foothold in Europe, deepen its presence in the region, and deliver exceptional products and services to local users, supporting the green transformation of the European automotive industry."
Jim Baumbick, President of Ford Europe, said: "For 50 years, the Valencia plant has produced many of Ford's most beloved models. Now, this outstanding team will also reshape Ford's future. By joining forces with Geely Auto, an excellent partner, we will build a more flexible, efficient, and cost-competitive manufacturing system, fully unlocking the potential of the Valencia plant and its exceptional team. Together, we will create a manufacturing benchmark that meets the competitive demands of the new era, offering a product lineup that combines track handling, off-road capability, diverse powertrain technologies, and distinctive Ford brand DNA."
