Ford and Geely agree to manufacture a joint venture in Spain

China automobile industry jelly Electric cars will be built in a ford motor The two companies announced on Thursday their factory is in Spain as part of a new joint manufacturing venture in Europe.

Pending regulatory approvals, the companies said the joint venture will begin operations in the first half of 2027, with the first new vehicles scheduled to roll off the line in 2028. The Valencia, Spain plant will continue production of the Ford Kuga in the meantime, according to a press release.

The two companies said that Ford will own 66% of the joint venture, while Geely will own a 34% stake.

The two companies said that the joint project is expected to include a new electric crossover for Ford, “in addition to a new member of the Bronco family, in addition to two electric Geely SUVs, with production starting in 2028.”

The announcement comes after months of reported talks between the two sides, as legacy automakers like Ford have been trying to compete with Chinese automakers that have been rapidly expanding into new markets outside China for several years.

“The joint venture addresses the new realities of the European market – intense global competition, relentless cost pressure, and tightening regulation – resetting Valencia to build to the industry’s emerging cost standard,” the companies said in the statement.

Automakers like Ford have historically formed partnerships with Chinese companies for production and sales in China, but many older companies have expanded these ties geographically.

Chrysler parent Stellantis It has expanded its years-long partnership with Chinese company Leapmotor to Europe and Germany Volkswagen It said it was open to sharing underutilized European factories with Chinese car brands as part of a cost-cutting drive.

The new alliance with Ford comes a day after a US Senate committee approved legislation to tighten the ban on Chinese automakers entering its home country.

Ford CEO Jim Farley, who has been complimentary of Chinese automakers for their speed and products, had previously said the automaker would look to partnerships to help its global operations.

The two companies said that Ford’s partnership with Geely dates back to 2010, when it sold Volvo Cars to Geely.

“We are committed to delivering vehicles that European customers will choose on merit: in terms of industry-leading features, high quality and actively contributing to Europe’s green future. Simply put: we build cars in Europe, for Europe, together with a trusted partner,” Alex Nunn, Geely’s vice president, said in the statement.