Ford and Geely are preparing a joint venture at Ford's plant in Almussafes, near Valencia. The companies plan to assemble five vehicles there for the European market: the Ford Kuga, a new compact Ford Bronco, another family Ford crossover and two Geely electric SUVs.
The agreement was announced on 23.07.2026. According to Ford's official announcement, the US company will own 66% of the joint venture, while Geely Auto will hold 34%. The deal still requires regulatory approval.
When the joint venture will start operating
Ford and Geely expect to officially launch the new structure in the first half of 2027. The first new vehicles are scheduled to roll off the assembly line in 2028. Until then, Ford Kuga production in Valencia will continue without interruption.
The plant has been operating since 1976. It was here, in May 1976, that assembly of the first Ford Fiesta began. The facility's stated potential capacity is around 500 000 vehicles per year. The companies have not yet said what production volume they expect after all five models are introduced.
Vehicle | What has been confirmed | Timing | What remains unknown |
|---|---|---|---|
Ford Kuga | The current model will remain on the assembly line; production will not stop because of the joint venture | Currently in production | No changes to the lineup after the joint venture launches have been announced |
New Ford Bronco | A compact SUV for European roads and a new member of the global Bronco family | Production from 2028 | Platform, engines, dimensions, specifications and price |
New Ford crossover | A family model designed by Ford and jointly developed with Geely; several powertrain types have been announced | Launch in 2028 | Name, platform, powertrain lineup and sales markets |
First Geely electric SUV | An all-electric model for the European market | Production planned from 2028 | Name, battery, power output, range and price |
Second Geely electric SUV | The brand's second all-electric model in the joint venture's production program | The exact launch sequence has not been disclosed | Name, class, technical specifications and production start date |
Ford Kuga will remain in the production lineup
The Kuga is currently the only Ford model assembled in Valencia. After the joint venture is established, it will remain on the assembly line and become one of three Ford models in the new production lineup.
This is a key point: the plan is not to hand the plant over to Geely or replace the Kuga with a Chinese model. The facility will produce vehicles for both brands at the same time, while combining volumes should improve plant utilisation and allow the partners to share development and manufacturing costs.
The European Ford Bronco will be a separate compact model
The second Ford model will be a new member of the Bronco family. The company describes it as a compact SUV designed for trips beyond paved roads and adapted to European roads. Production is expected to begin in 2028.
This vehicle should not be automatically identified with the American body-on-frame Bronco or the current Bronco Sport. Ford has not yet disclosed the European model's platform, dimensions or powertrains. Reports in the automotive press about a possible technical connection with the Kuga remain speculation, not an official specification.
The third Ford will be developed with Geely
Another new model will be a family crossover designed by Ford and jointly developed with Geely. The manufacturer uses the term multi-energy: the model is expected to support several powertrain options. It has not yet specified which ones—petrol, hybrid, plug-in hybrid or electric.
Ford stresses that the crossover will not be a simple Geely copy with a different badge. It is expected to have its own body and tuning, although the technical architecture has not been named officially. The model is planned for launch in 2028. It will be part of Ford's program of five new vehicles for Europe, which the company aims to implement by 2029.
Which Geely models will be assembled in Spain
Geely has been allocated the remaining part of the program—two all-electric SUVs. Geely Auto's official announcement says that the first vehicles from the brand should roll off the line in 2028. Their specific names, classes and specifications have not been published.
It cannot yet be stated that the Geely EX5, EX2 or other existing models will be produced in Valencia. The companies have only referred to two electric SUVs. It is also unknown whether they will be based on the same architecture as the jointly developed Ford crossover.
Why production within the European Union benefits Geely
Local assembly shortens the logistics chain and helps manufacturers adapt vehicles more quickly to the requirements of European markets. There is also a trade factor: on 30.10.2024, the European Commission announced definitive countervailing duties on imports of electric vehicles from China. Geely was assigned an additional rate of 18.8%. These figures were published in materials from the European Commission.
However, Ford and Geely officially explain the partnership in terms broader than tariffs alone. They identify three objectives: keeping the plant busy, sharing development costs and bringing the cost of European production closer to the industry's new level. Reducing dependence on imports is therefore a consequence of localisation, but not the only stated reason for the deal.
Why Ford and Geely already have a history together
The companies' cooperation began long before the Valencia project. On 28.03.2010, Geely signed an agreement to purchase Volvo Cars from Ford, and the deal was completed on 02.08.2010. The partners are now moving from a previous buyer-seller relationship to joint vehicle development and production.
For Ford, the agreement offers a way to retain a major European plant and expand its model range without financing every component of a new architecture independently. Geely gains a manufacturing base within the EU and the ability to build vehicles closer to its customers.
What the deal means for buyers
The main outcome is that Ford's European range should gain two new crossovers, while Geely will produce its own models at a Ford plant in Spain for the first time. At the same time, future Ford buyers may have a broader choice of powertrains than a lineup focused exclusively on electric vehicles.
Local production alone does not guarantee lower prices. Ford and Geely have not disclosed the prices, specifications, production volumes or initial sales countries for the future vehicles. These details will have to wait until production approaches its planned start in 2028.
