Geely and Ford Form Joint Venture to Build EV Plant in Europe

[International Cooperation] Geely and Ford have signed an agreement to jointly establish an electric vehicle production base at a factory in Spain.

Key Developments: Production Starts in 2027, First Vehicles Roll Off Line in 2028

The two companies will form a joint venture at Ford’s Almussafes plant in Valencia, Spain, with Geely investing EUR 221 million for a 34% stake, while Ford holds the remaining 66%. Subject to regulatory approval, the facility will commence official operations in the first half of 2027 and produce its first new vehicle in 2028.

Product Strategy: Targeting Europe's Small EV Segment

Geely will produce two all-electric models, including the EX2 (the overseas version of China's Xingyuan). Ford will continue manufacturing the Escape internal combustion engine vehicle and will launch the Bronco compact SUV along with a jointly developed new energy crossover.

Strategic Rationale: Avoiding Tariffs and Utilizing Idle Capacity

The plant has an annual capacity of 400,000 vehicles and was partially idled following Ford’s recent restructuring in Europe. This partnership enables Geely to achieve localized manufacturing in Europe, circumvent EU tariffs on Chinese-made EVs, and accelerate the implementation of its global electrification strategy.