Geely to Build EV SUVs at Ford's Spain Plant for Europe

• Ford's Valencia plant has capacity for 500,000 vehicles annually but operated at only 26% in 2025, down from Ford being Europe's No. 4 automaker a decade ago to eighth place with sales falling from over 1 million to 426,000 cars
• Geely will build the EX5 SUV and a second vehicle in development, marking a race among Chinese automakers (including BYD, Chery, and Xpeng) to secure European factory space before new EU local-content mandates take effect
• The companies will jointly develop a crossover SUV with multiple powertrains (fully electric, plug-in hybrid, and extended-range EV) for 2028 production, leveraging their relationship dating back to Geely's 2010 purchase of Volvo from Ford

Summary: Geely to Build EV SUVs at Ford's Spain Plant for Europe

Key Development:

Geely Auto and Ford announced a joint venture (66% Ford, 33% Geely) to manufacture electric SUVs at Ford's Valencia, Spain factory, with production starting in 2028. This marks Geely's first European production facility.

Production Details:

• Two Geely electric SUVs will be produced: the EX5 (already sold in Europe) and an undeveloped model
• Ford will also produce its Bronco SUV at the facility starting in 2028
• The companies will jointly develop a crossover SUV with multiple powertrains (fully electric, plug-in hybrid, extended-range EV)
• Valencia plant has 500,000 vehicle annual capacity but operated at only 26% capacity in 2025

Strategic Rationale:

Chinese automakers are urgently seeking European production capacity ahead of EU "Made in Europe" legislation requiring minimum local content in EVs. Spain is attractive due to lower labor and energy costs. For Ford, the partnership monetizes excess capacity and reduces fixed costs at a time when its European sales have declined from over 1 million vehicles (No. 4 automaker) a decade ago to 426,000 (eighth place) in 2025.

Market Context:

• Other Chinese automakers pursuing similar strategies: BYD considering Spain, Leapmotor partnering with Stellantis in Zaragoza, Nio in talks with Stellantis
• Such cooperation would be unlikely in the U.S., where legislation to restrict Chinese automakers recently advanced in the Senate
• Chinese EV sales have slowed domestically in 2026, driving aggressive international expansion

Executive Insight:

Ford European head Jim Baumbick indicated no "hard constraints" on Geely's capacity usage, emphasizing the goal to "load up the facility" for competitive cost scaling.