Ford Turns to Geely as Chinese Competition Reshapes European Manufacturing

Ford has agreed a Europe-focused manufacturing joint venture with Geely Auto at its Valencia plant, in a deal that hands a Chinese carmaker its first European production base and underscores how far the competitive balance has shifted against legacy Western manufacturers.

The venture, announced in Valencia on Thursday, will be 66 per cent owned by Ford and 34 per cent by Geely, subject to regulatory approval, with operations beginning in the first half of 2027 and vehicles rolling off the line from 2028. The plant, which Ford opened 50 years ago, has potential annual capacity of around 500,000 units and currently builds only the Kuga.

The product plan brings five vehicles from two brands to a single site. Ford will add a multi-energy crossover co-developed with Geely and a new compact member of the Bronco family, while Geely will build two electric SUVs. Kuga production continues uninterrupted. Ford of Europe president Jim Baumbick said the arrangement would involve additional hiring and described it as a public-private benchmark achieved with Spanish national and regional government support.

The framing in the joint statement was blunt: the venture addresses intense global competition, relentless cost pressure and tightening regulation, resetting Valencia to build at the industry's emerging cost benchmark. Geely senior vice-president Victor Yang said localisation was necessary to be genuinely rooted in Europe, though he declined to specify models. Geely sold 474,228 vehicles overseas in the first half.

The pressures are visible elsewhere. Renault reported a marginal decline in first-half volumes on Thursday, citing Chinese competition in its core European market. Aston Martin, meanwhile, completed a £550 million financing led by HPS Investment Partners, comprising a £450 million senior secured term loan and a £100 million delayed draw facility, lifting pro forma liquidity to roughly £340 million. Shares rose more than 9 per cent in London. Half-year results follow on 29 July.