Ford has signed a deal with Geely to allow the Chinese manufacturer to build two ‘sleek electric SUVs’ in its factory in Valencia.
Once approved, the joint venture will secure the future of Ford’s Spanish plant, which has capacity to build 500,000 vehicles per year but currently only sticks together the compact Kuga crossover. As well as the new Geely EVs arriving in 2028, the investment in the factory will also allow it to build the ‘new member of the Bronco family’ for the same year, plus an all-new ‘multi-energy’ Ford crossover that’ll arrive in 2029 having been jointly developed with Geely. Interesting. And the Kuga will soldier on for now.
“Europe is home to one of the fiercest competitive battles in the global automotive industry today,” read Ford’s statement about the deal. “Tightening regulation, high operating costs and a new generation of global competitors have reset the industry’s benchmark for manufacturing cost, vehicle technology and software experience.
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“By pooling production volume, Ford and Geely will maximise the capacity of the Valencia plant, lower the cost of every vehicle built there, and compete at this emerging cost standard while delivering world-class multi-energy vehicles and strengthening the local Valencia economy in the process.”
We’re told that multiple partners were considered for the venture, but that a partnership with Geely—which should kick off in early 2027—was chosen given the relationship between the two companies that began when Ford sold Volvo to the Chinese megacorp in 2010.
The Valencia factory has been building cars since it opened for the original Ford Fiesta back in 1976, but we already know that the new Fiesta will be built in France on the underpinnings of the Renault 5. This new deal also shouldn’t affect Ford’s tie-up with Volkswagen that sees it build the Explorer and Capri on the bones of the ID.4 and ID.5 respectively.
“This JV with Ford in Europe reflects our commitment to open, collaborative product development as part of our growth strategy, deepening our local presence and commitment to customers in Europe”, said Alex Nan, vice president of Geely Auto Group.
“We are dedicated to delivering vehicles that European customers will choose on merit: on industry leading features, on high-quality and on actively contributing to Europe’s green future. Put simply: we are building cars in Europe, for Europe, alongside a trusted partner.”
NOTE: This story first appeared on TopGear.com. Minor edits have been made.
