Automotive giants Ford and Geely have announced a new deal that’s set to save Ford’s manufacturing plant at Valencia in Spain (main) and see several new models produced there, including a new Ford SUV that will use Geely technology. Finally confirmed after months of speculation, the deal will see a new joint venture between the two companies created, with Ford holding a 66 per cent share and Geely 34 per cent.

Currently, only the Ford Kuga – which was last sold in Australia as the Escape – is produced at the plant for European markets. Around 100,000 were built in 2025, which is approximately 20 per cent of its 500,000 unit annual capacity. However, the new joint venture will see the plant produce not only new Ford multi-energy vehicles, but also two new electric Geely SUVs.

That makes this new joint venture significant in itself because Geely will become one of the first Chinese manufacturers to produce vehicles in Europe, dodging local tariffs for Chinese-built models that can reach up to 33.5 per cent. The first European-built Geely models will start production in 2028.

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In addition to the sharing of the Valencia plant, Ford will launch a new SUV for European markets that will use a Geely platform. Not much is yet known about it, other than it will offer both electric and hybrid power, and be “engineered with Ford’s signature capabilities and driving dynamics”, “tailored for European drivers”.

The new Ford SUV will be one of five “rally-inspired” models that the company will launch in Europe by 2029, including a new variant of the Bronco family just for European customers, which will also be produced at the Valencia plant.

Ford will also launch two new small electric models twinned with current Renault products, though these will likely be produced by Renault in France. There will also be yet another multi-energy SUV, but nothing is known about it just yet, but we’re predicting that it will be a next-generation Kuga.

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An AI rendering of what the new European Ford Bronco SUV could look like

Geely is yet to announce which of its models will be produced at the plant, though is aiming for a massive European expansion and plans for 40 per cent of its European range to be made in Spain.

Ford originally opened the Valencia plant in 1976, and since then, it’s produced some of its most popular European models such as the Fiesta, Mondeo, Focus and Transit Connect. European production of the first Geely models will commence in 2028, the same year as Ford’s new Geely-based SUV.