Ford partners with Geely to bolster European range, save Spanish plant

The long-rumoured partnership between Ford and Geely has been announced, and it will see new products for both brands produced at Ford's plant in Valencia, Spain.

When the deal comes into effect next year, Geely will take a 34 per cent ownership stake in the Valencia factory. From 2028 the plant will begin producing two "sleek" Geely electric SUVs, and a Ford "multi-energy" SUV based on a Geely platform.

Geely hasn't said which EVs it will produce in Valencia, and Ford has given no indication which Geely architecture it plans to utilise for its new SUV.

The Blue Oval says its SUV will be more than a reskinned Geely. It is promising the car will be "engineered with Ford’s signature capabilities and driving dynamics", and will be "tailored for European drivers and will offer them choice in powertrain technology, as well as outstanding digital experiences".

The plant is currently operating well under its maximum capacity of 500,000 cars per year as it only produces the aging Kuga SUV that's available in petrol, hybrid and plug-in hybrid guises. We estimate the factory churned out under 150,000 Kugas last year.

Ford's Valencia plant was opened in 1976 to produce the Fiesta, the company's first global front-wheel drive model. Since then it has also produced the Escort, Ka, Focus and C-Max.

Output at the factory has dipped dramatically in the past few years with the discontinuation of the S-Max, Galaxy and Mondeo, while the Transit Connect has been outsourced to Volkswagen.

Ford's new Geely-based SUV will be one of five "rally-inspired vehicles" the automaker plans to launch in Europe by 2029. Another is a new Bronco-branded model based on the C2 architecture that underpins the current Kuga/Escape. The new European Bronco isn't due to come on stream until 2028, but it too will be made in Valencia.

Late last year Ford and Renault signed a deal, which will see the French firm produce a new Fiesta EV based on the Renault 5 E-Tech, and a Puma-class vehicle based on the 4 E-Tech. Production of these cars will kick off in 2028.

No details about the fifth car have been released so far.

All up, these vehicles should help to rejuvenate Ford's passenger car range, which has been reduced to the Puma, Kuga, Mustang, Mustang Mach-E, and the Volkswagen-based Capri and Explorer electric SUVs.

Ford says the new deal with Geely is "built on a foundation of trust and respect stretching back to 2010 when Ford sold Volvo Cars to Geely, and watched it protect and revitalise the brand".

By building its EVs in Europe, Geely is able to avoid the additional tariff placed on EVs from China, which can reach as high as 35.4 per cent.

Right now there's no indication Ford plans to sell its Geely- or Renault-based vehicles outside of Europe.

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