On the Dash:
- Ford and Geely will build EVs together at Valencia, Spain
- All vehicles produced stay in Europe, with no U.S. market plans announced
- Deal deepens Ford-Geely ties as Senate moves to tighten U.S. restrictions on Chinese vehicles
Ford Motor Company and Geely Auto announced a joint venture to build vehicles together at Ford’s manufacturing plant in Valencia, Spain. The Detroit automaker will hold 66% of the new entity, while Geely will hold the remaining 34%.
Pending regulatory approval, the joint venture will begin operations in the first half of 2027, with the first vehicles expected to roll off the assembly line in 2028.
The venture is set to produce a new multi-energy crossover for Ford, jointly developed with Geely, along with a new member of the Bronco family built for European roads. Geely will build two electric SUVs at the plant, its first vehicles from the partnership. Production of the Ford Kuga will continue uninterrupted through the transition.
However, it’s important to note that the vehicles produced at Valencia are only intended for the European market. The automakers have described the venture as Europe-focused, and no plans for U.S. distribution have been announced.
The two automakers began talks in April, when a broader deal was believed to include a possible U.S. component involving Ford licensing Geely’s technology. That piece of the discussions has since stalled, as tariffs and connected-vehicle software restrictions continue to limit Chinese automakers’ access to the U.S. market. By May, talks moved toward a Spain-specific arrangement, with reports pointing to Geely taking over a dormant assembly line at the Valencia complex.
Ford CEO Jim Farley has framed Chinese competition as an urgent threat for months. “We know we’re in a fight for our lives,” Farley said in December, as he announced Ford’s EV partnership with Renault.
Notably, the Valencia deal lands the same week the Senate Commerce Committee advanced the Connected Vehicle Security Act of 2026, which would permanently restrict Chinese-linked connected vehicles and software in the U.S. market. That underscores a split strategy taking shape across the industry. Automakers are tightening ties with Chinese manufacturers in Europe while U.S. policy moves to keep them out entirely.
For U.S. dealers, the bigger question is whether any version of this cost-sharing model could eventually cross the Atlantic, and what regulatory hurdles would stand in the way.
