Ford and Geely have agreed to form a manufacturing joint venture at Ford’s Valencia plant in Spain, with the US group owning a 66 per cent stake and the Chinese firm the rest. The partnership also covers joint development of a new crossover slated for 2028.

The plant, which once built the best‑selling Fiesta, has an annual capacity of 500,000 vehicles but has been running at only about 30 per cent utilisation. Geely plans to produce two electric SUVs there while Ford will add two new models, including the latest Bronco SUV, aiming to run the facility at full capacity.

The deal follows Ford’s earlier alliances with Renault and Volkswagen in Europe. Its EU market share fell to 2.2 per cent in June 2026 from 2.9 per cent a year earlier, trailing Chinese rivals such as BYD, Geely and SAIC.

Legacy automakers are increasingly teaming up with Chinese manufacturers to cut costs and secure factories. Geely targets a 5 per cent share in key regions and wants to become a long‑term local producer rather than just export cars from China.