Following months of rumours, Ford and Geely have now officially linked arms in Europe, in a new partnership that will see the joint development of a new C-segment SUV, alongside the introduction of two electric models from the Chinese marque, all of which will be built at Ford’s Valencia factory in Spain.
The deal, set to be completed next year, will involve the establishment of a new joint-venture company, of which Ford will own 66%, and Geely the other 34% of the shares. The new entity will take over the operation of the factory, which Ford opened 50 years ago.
Still Ford’s biggest plant outside the US, the companies will be aiming to maximise the facility’s maximum capacity of around 500,000 vehicles a year. The Valencia plant currently produces only the Ford Kuga, but by 2029, four new models are expected to enter the fray as a result of the new partnership.
These will include a new European-focused Ford Bronco SUV due in 2028 which is understood to be based on the same C2 platform as the Kuga, two Geely EV SUVs, as well as the aforementioned new Ford C-segment “family crossover”, to be jointly developed by the two companies.
Speaking to Autocar, Ford of Europe boss Jim Baumbick said that the new model will be “a rally-bred crossover in the C-segment”, and will be “a completely unique top hat”, not a simple reskin exercise. “We don’t do boring cars. This is a completely uniquely engineered, truly unmistakably Ford product that will be differentiated from Geely’s product,” Baumbick added.
Alongside the new Bronco, they will be part of five new rally-inspired models, which Ford plans to launch in Europe by 2029 as part of a revival plan for the region.
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As for Geely’s part of the equation, the partnership will see the Chinese automotive giant produce two EV models at the Valencia plant, with production expected to begin in 2028. This will be the first time a Geely-branded model is produced in the continent, signalling its global expansion goals.
“We have always believed that to be truly rooted in Europe, we must be of Europe,” commented Geely senior vice-president, Victor Yang. “For us that means localisation and a long-term commitment to integrating our expertise with the world-class manufacturing heritage of the Valencia plant.”
“We are doubling down on our belief in European industrial excellence. We aren’t here simply to sell; we’re here to invest in local talent, to strengthen supply chains and work alongside Ford to deliver the multi-energy solutions European customers are asking for,” he added.
The company declined to disclose which two models will be built at the Valencia plant, although it is targeting for between a third and a half of its European sales to be produced in Europe within around five years.
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So why exactly Geely? According to Baumbick, it’s primarily due to the Chinese giant’s “EV and broad capabilities” of which Ford will be able to leverage on Geely’s scale to allow for product differentiation within the market.
“We think Geely is very special and this is going to be a really special partnership,” he said. The two companies’ history also dates back to 2010, when Geely bought Volvo from Ford.
“The battle we’re in and the environment in Europe has changed forever. It’s at a new level of cost. What we’re trying to do is ensure that we can actually demonstrate the lowest possible cost while building products specifically in Europe for European customers.
“It’s no different than what the Geely team is trying to do is to get costs that they see in China actually in Europe, and collectively we’re taking choices that are congruent with made-in-Europe. Our goal is to make sure that we fully utilise this facility, and so that doesn’t create any fixed parameters. It gives us the flexibility to ensure that we can optimise this facility. And if you fully utilise it, it gets the lowest cost for everybody. That’s the goal.”
