Ford and Geely partner up to develop and build cars in Europe: will the new Kuga be Chinese?
Car changing is a big deal
Ford has announced a new joint venture with Chinese car giant Geely to build cars at its plant in Valencia, Spain, and the two brands are also working together on a new family SUV.
One of the biggest barriers for Chinese brands in Europe is import taxes. Electric cars imported to Europe from China are slapped with a 35% tariff, on top of the standard 10% tariff.
To get around this, Chinese brands are starting to set up shop in the UK and Europe. Chery Group is in talks with Jaguar Land Rover to build cars in Britain, and now Ford has partnered up with Geely to build cars in Valencia, Spain.
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Why have Ford and Geely partnered up?
Ford’s factory in Valencia used to produce models such as the Mondeo family car and S-Max MPV. Now with this joint venture with Geely, it’ll use the space left by those cars to build Geely models alongside Ford’s own cars.
The partnership aims to bring together the strengths of both companies to improve manufacturing efficiency and make better use of the Valencia plant.
By sharing production, Ford and Geely can reduce costs and respond more effectively to changing market conditions, including increasing competition and evolving consumer demand.
The joint venture also builds on a long-standing relationship between the two companies dating back to 2010 and a shared focus on quality, efficient manufacturing and offering customers a wider choice of powertrain technologies.
Alex Nan, vice president of Geely Auto Group, said: “We are dedicated to delivering vehicles that European customers will choose on merit: on industry leading features, on high-quality and on actively contributing to Europe’s green future. Put simply: we are building cars in Europe, for Europe, alongside a trusted partner.”
What cars will be built in Valencia?
The Valencia plant will continue to build vehicles for Ford while also becoming a production site for selected Geely models. The facility will also manufacture a mix of hybrid, plug-in hybrid and electric cars, to cater to growing demand for lower-emission transport in Europe.
For Ford, production of the Ford Kuga will continue at Valencia, maintaining the plant’s role as the manufacturing base for one of the company’s most popular SUVs in Europe.
The site is expected to begin production of a new compact Bronco SUV designed for the European market in 2028 too.
A new SUV, designed by Ford and jointly developed with Geely will also arrive in 2028. This could well be the new Kuga, and it will offer multiple powertrain options, allowing customers to choose the technology that best suits their needs.
In addition to the Ford cars, Valencia will manufacture two Geely-branded electric SUVs, with production also scheduled to begin in 2028. These will be the first Geely models produced at the plant and are intended to support the company’s expansion into the European market.
Geely has seen substantial growth in the first half of the year, with 474,228 vehicles sold worldwide. The venture supports the Chinese brand’s further expansion, while advancing Ford’s strategy of using partnerships to compete with the scale of cars seen across Europe.
“This partnership shows how automakers are strengthening Europe’s industrial base, but we can’t do it alone,” said Jim Baumbick, president of Ford Europe. “What we’ve achieved in Valencia, with the ongoing support of Spain’s national and regional governments, is a masterclass in public-private partnership that sets the benchmark for the rest of Europe.”
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