Ford and Geely Form Joint Venture for EV Production in Spain
Ford and Geely will build electric vehicles (EVs) together at Ford’s plant in Valencia, Spain. Ford owns 66% of the joint venture, while Geely holds 34%.
Details of the Partnership:
- Production Start: First half of 2027, with new vehicles rolling off the line in 2028.
- Models: Four models will be produced, including a new electric crossover for Ford, a Bronco variant, and two Geely SUVs.
- Existing Production: The plant will continue manufacturing the Ford Kuga during the transition period.
Background:
- Previous Relationship: Ford sold Volvo Cars to Geely in 2010, leading to shared production lines.
- Geely’s Strategy: Instead of building new factories, Geely has been utilizing existing plants and partnerships, as seen with Ford and Renault.
- Market Dynamics: The partnership addresses the "new realities" of the European market, including intense competition, cost pressures, and stringent regulations.
Significance:
- Geopolitical Context: This move comes amid US efforts to tighten restrictions on Chinese automakers entering the American market.
- Access to Technology: Ford gains access to Geely’s EV technology and cost structure in Europe while maintaining strategic distance from China.
- European Market: The joint venture is seen as a way for Geely to establish itself in Europe, where Chinese car sales have surged significantly over the past years.
Story by Darius Popa, Technology Enthusiast and Intern at The Next Web.