Ford and GEELY to Co-Develop Spanish EV Factory, Production Starts in 2028

Facing dual challenges of cost competitiveness and product strength posed by accelerating Chinese NEV exports, Ford is restructuring its European production footprint through strategic partnerships. It has been confirmed that Ford and GEELY Holdings have signed an agreement to establish a joint venture at Ford's existing facility in Valencia, Spain, for manufacturing electrified vehicles. Ford will hold a 66% stake, while GEELY will hold 33%.

The plant has suffered severe underutilization in recent years — output in 2025 fell short of 100,000 units, far below its designed annual capacity of 500,000. Previously, Ford had discontinued production of conventional ICE models such as the Mondeo and Galaxy at this site. This collaboration aims to restart production lines and significantly improve utilization. According to Jim Baumbick, Ford's Europe head, the joint venture is scheduled to begin production in 2028, launching initially a compact crossover co-developed by both parties, plus a Europe-specific version of the Bronco; GEELY will concurrently produce its own branded all-electric SUV on the same site.

Baumbick emphasized that one core objective is to "restore the plant's output to full capacity" while also "helping Ford maintain cost competitiveness" against intensifying price and technology pressure from Chinese brands — including BYD, MG, and Chery — in the European market. He specifically noted that product portfolios will be strictly segregated to avoid overlap and safeguard Ford's brand positioning.

Notably, this model is not isolated. Stellantis previously entered a similar joint venture with Leapmotor Automobile to build an EV production base in Spain; likewise, Ford's traditional European rivals, Opel/Vauxhall, are developing a new SUV based on Leapmotor technology. For GEELY, local production in Spain also enables circumvention of the EU's 28.8% anti-subsidy tariffs levied on Chinese-made electric vehicles.

Industry analysts view such deep production integration between Chinese and international automakers as a critical pathway — balancing efficiency, regulatory compliance, and cost control — in the global EV transition. However, the actual rollout timeline, depth of technical synergy, and end-market acceptance remain to be seen.