Ford, Geely agree to manufacturing joint venture in Spain
A Ford logo is seen at the New York International Auto Show Press Preview on March 27, 2024 in Manhattan, New York City.
David Dee Delgado | Reuters
chinese car manufacturer Geely will produce electric vehicles Ford Motor The companies announced Thursday that they have established the factory in Spain as part of a new European manufacturing joint venture.
Regulatory approvals are awaited, companies said The joint venture will begin operations in the first half of 2027, and the first new vehicles are planned to roll off the line in 2028. The plant in Valencia, Spain, meanwhile, will continue to produce the Ford Kuga, according to a press release.
Ford will own 66% of the joint venture and Geely will own 34%, the companies said.
The announcement comes after months of talks between the two sides as legacy automakers such as Ford try to compete with Chinese automakers that have been rapidly expanding into new markets outside China for several years.
This also comes a day after a US Senate committee approved legislation to toughen the ban on Chinese automakers from entering the US.
Ford’s partnership with Geely dates back to 2010, when it sold Volvo Cars to Geely, the companies said.
Ford CEO Jim Farley, who congratulated Chinese automakers for their speed and products, had previously said that the automaker would look for partnerships that would help its global operations.
