KATHMANDU : Ford Motor Company and Geely Automotive have announced a new joint venture in Spain that will develop and build next-generation vehicles for the European market.
The new company will be based at Ford’s Valencia plant, with Ford holding a 66 percent stake and Geely owning the remaining 34 percent. The partnership is expected to begin operations in the first half of 2027, subject to regulatory approvals.
The companies say the venture will combine Ford’s manufacturing footprint in Europe with Geely’s vehicle development capabilities. The collaboration is aimed at improving production efficiency, reducing costs, and accelerating the launch of new models.
Ford’s Valencia facility, one of Europe’s largest vehicle manufacturing plants, has an annual production capacity of around 500,000 vehicles. The site will continue producing the Ford Kuga while also serving as the production hub for several new models from 2028.
As part of the product roadmap, Ford will expand its Bronco lineup with a new compact SUV. The two companies will also jointly develop a new Ford crossover, with Ford leading the vehicle’s design.
Geely will use the Spanish plant to produce two new energy vehicles for the European market. One of them will be the Geely EX2, the European version of the Geely Xingyuan, which has become one of the brand’s best-selling models in China.
The announcement comes as Geely continues to expand internationally. The Chinese automaker reported 474,000 overseas vehicle sales during the first half of 2026, representing a 158 percent year-on-year increase.
