Ford has struck a deal with Chinese automaker Geely that will give the latter access to part of Ford’s Valencia Assembly Plant in Spain. Geely plans to use the facility to produce vehicles for the European market, allowing Ford to make use of otherwise idle production capacity while generating value from the underutilized portion of the plant. However, the partnership also goes beyond manufacturing.
The two automakers are planning to jointly develop a new SUV for the European market. The model is expected to be offered as a plug-in hybrid, an extended-range electric vehicle (EREV), and a fully electric vehicle, with production scheduled to begin in 2028.
Geely confirmed that the upcoming Ford SUV will be based on its Global Intelligent Electric Architecture (GEA), an electrified platform already used by the all-electric EX5 and Starray PHEV SUVs sold in Europe. The architecture is also set to be used for two upcoming Renault Group models, according to Automotive News.
The GEA platform is designed to accommodate multiple electrified powertrains, including plug-in hybrids, fully electric vehicles, and extended-range electric vehicles (EREVs). Ford has not yet confirmed whether the architecture will also be used for the future Bronco-family SUV expected to be produced at the Valencia plant.
According to Reuters, the two automakers formed a joint venture, 66% of which is owned by Ford and 34% by Geely. Such a partnership with a Chinese company would not be possible in the U.S. market, where efforts are being made to keep Chinese automakers and their vehicles at bay.
U.S. Representative John Moolenaar, a Michigan Republican who chairs the House’s bipartisan select committee on China, commented on Ford’s partnership with Geely last month. He said:
“This partnership with Geely will further enable China’s decimation of auto markets in Europe as Chinese automakers set their sights on North America.” He added that Ford’s decision to partner with a Chinese entity while seeking protection in the U.S. against Chinese automakers was “incomprehensible.”
Ford responded to Moolenaar’s remarks, stating:
“In Europe, the landscape is changing fast and we are competing head-on with the Chinese and every other major global automaker. This new reality is forcing every car company to get radically leaner and smarter, which is exactly what we’re doing with our plant in Valencia, Spain.”
