Ford and Geely cooperate: Valencia plant builds e-models

Ford Looks to Spain Ford Wants to Collaborate with Geely in Valencia

2026-07-27 Source: dpa 2 min Reading Time

Ford plans a collaboration with the Chinese Volvo Cars parent company Geely. This is intended to better utilize the Valencia plant to save costs ...

Because the Ford plant in Valencia is not really profitable, Ford wants to team up with the Chinese car manufacturer Geely. Read here what the two are planning ...(Image: Ford) — Because the Ford plant in Valencia is not really profitable, Ford wants to team up with the Chinese car manufacturer Geely. Read here what the two are planning ...
(Image: Ford)

The Ford plant in Valencia is on the decline! Ten years ago, about 8,000 people worked there, now only half that number. However, through collaboration with Geely, five car models are planned to be built at the Spanish Ford site, and a joint venture will be established. Ford will then hold 66 percent of the new company, with Geely taking the rest. It is also reported that the focus will be on "Multi Energy" vehicles—that is, hybrid and electric vehicles. Valencia is set to become a production mecca for the next generation of low-emission and emission-free vehicles for the European market. Geely is known, among other things, for the small car Smart, which is jointly owned by Geely and Mercedes. The Chinese company aims to accelerate its expansion in Europe through its collaboration with Ford. Ford and Geely will launch a crossover model based on a Geely platform, which will hit the roads as a Ford in 2028. Production of the small Ford SUV Kuga will continue unchanged. In addition, a new European variant of the larger US SUV Bronco will be introduced. However, both companies intend to pursue their own paths in terms of sales and brand strategy. Geely, in turn, plans to manufacture two electric SUVs in Valencia. This would mark the first time the Chinese company produces in Spain, which they believe will provide better access to the EU market.

The Valencia Strategy will not Disadvantage Ford in Cologne

The largest Ford Europe site is known to be in Cologne (Germany), where two electric cars are manufactured—the Explorer and Capri models. The US parent company has invested billions in the German plant to prepare it for the electric vehicle era. However, overall sales of the electric cars are below expectations, as is the case with other OEMs as well. The Cologne plant and the European headquarters located there have been undergoing cuts for years. Staff has been reduced step by step, and certain development tasks have been relocated to the USA. By 2027, Ford in Cologne could have fewer than 8,000 employees. Is Ford now focusing on hybrid vehicles from Spain at the expense of interest in Cologne? Ford Manager Baumbick denies this. "The Valencia cooperation has no impact on Cologne. The Cologne electric models are a key part of our portfolio," Baumbick said.

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