Nan Shengliang (2nd L), vice president of Geely Auto Group, and Jim Baumbick (3rd L), president of Ford Europe attend an event to announce the deal in Valencia, Spain, July 23, 2026. Geely Automobile Holdings and Ford Motor Company on Thursday announced a deal to produce new energy vehicles for the European market at Ford's manufacturing plant in Valencia, Spain. (Photo/Pablo Morano)

Valencia, Spain - Geely Automobile Holdings and Ford Motor Company on Thursday announced a deal to produce new energy vehicles for the European market at Ford's manufacturing plant in Valencia, Spain.

Pending regulatory approval, the joint venture is expected to begin operations in the first half of 2027, with the first new vehicles set to roll off the production line in 2028.

Under the plan, Chinese auto manufacturer Geely will produce two new energy models at the Valencia plant, while Ford will manufacture three Ford-branded multi-energy vehicles. Ford will hold a 66 percent stake in the joint venture and Geely the remaining 34 percent.

The partnership will transform Ford's Valencia facility into a shared manufacturing hub, improving capacity utilization, reducing development costs and creating long-term employment opportunities for the region's automotive workforce, the company said. The plant has an annual production capacity of about 500,000 vehicles.

Nan Shengliang, vice president of Geely Auto Group, said the partnership marks "an important step toward open collaboration" and will further strengthen the company's presence in Europe.

"We are dedicated to delivering vehicles that European customers will choose on merit, with industry-leading features, high quality and a contribution to Europe's green future," Nan said.

Jim Baumbick, president of Ford Europe, said the cooperation would help build "a flexible, cost-effective industrial system," while making full use of the Valencia plant and its workforce.

He added that the partnership forms part of Ford's strategy to offer European customers vehicles featuring rally-inspired handling, off-road capability and multi-energy technologies.

Geely, whose overseas sales increased by 158 percent year-on-year in the first half of 2026, purchased Volvo Cars from Ford in 2010.