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Ford and Geely plan Valencia auto JV, targeting 2028 production

Ford and Geely plan Valencia auto JV, targeting 2028 production

Ford will hold 66% of the planned Spain venture and Geely 34%, with operations slated for the first half of 2027 pending approvals and EV output due from 2028.

Fact Check
The official Ford/Geely PR Newswire release directly confirms the Valencia JV, two Geely electric SUVs, a jointly developed Ford crossover, and Ford using spare Valencia capacity, with first new vehicles in 2028. Yahoo Finance (Reuters reporting) independently confirms the EX5 as the first Geely SUV, the 2028 production timeline, and Ford's low Valencia utilization motivating cost reduction. WSJ corroborates the tie-up and jointly developed SUV. The only minor inconsistency is the Geely equity stake (34% in Ford's release vs 33% in Yahoo), which does not affect the substance of the claim.
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Summary

Ford and Geely said their planned joint venture at Ford’s Valencia plant in Spain is expected to begin operations in the first half of 2027, subject to regulatory approvals, with the first new electric vehicles scheduled to roll off the line in 2028. Ford said it will own 66% of the venture and Geely 34%. The Valencia factory will continue producing the Ford Kuga in the meantime. The agreement follows months of reported talks as established automakers seek ways to lower costs and respond to the rapid overseas expansion of Chinese carmakers. The companies also pointed to a longer relationship dating back to Ford’s 2010 sale of Volvo Cars to Geely, while Ford CEO Jim Farley has previously said partnerships would play a role in supporting the automaker’s global operations.

Terms & Concepts
  • joint venture: A business arrangement in which two companies share ownership of a new operation.
  • electric vehicles: Cars powered by electric motors using energy stored in batteries rather than conventional internal combustion engines.