Ford and Geely have announced a Europe-focused joint venture to manufacture multi-energy passenger vehicles at Ford’s Valencia, Spain plant, aiming to boost capacity and competitiveness in the European market.

The operations are planned to start in early 2027, with the first new vehicles to roll off the line in 2028, while the Valencia plant will continue producing the Ford Kuga in the interim.

Among the Geely-developed SUVs expected from the venture is the E2, based on Geely’s EX2, which was the best-selling electric car in China in 2025.

The article notes inputs from agencies.

Analysts view this cross-border cooperation as part of a broader shift toward global supply chains and industrial collaboration in the NEV sector, not solely a race for competitive technology.

Details about the partnership and its implementation were not disclosed and are described as forthcoming.

Reaction to the partnership was mixed: Wall Street viewed it positively for Ford, while a U.S. lawmaker criticized it as aiding China in global auto supply chains and potentially impacting U.S. market competition.

Unions welcomed the deal if commitments on local job creation and supply-chain localization are kept, stressing the need for strong local tech and supplier involvement beyond simple assembly.

The Changzhou facility, Rosenberger’s largest Asia-Pacific base, features Industry 4.0 capabilities including automated warehousing, fully automated production lines, a digital management system, and an R&D lab, with a focus on automotive connectors and fiber-optic products for AI data centers.

The deal is part of a broader shift toward tariff-aware procurement, greater visibility, and balancing just-in-time with production stability to manage costs and supply risk.

The collaboration aims to share production capacity, supplier networks, and sourcing expertise to boost efficiency amid rising costs and stricter regulations.

Both firms emphasize a shared focus on quality, cost-efficient sourcing, and cutting-edge technologies, with the partnership backed by Spanish authorities as a public-private success.