Ford Motor Company (NYSE: F) and Geely Automobile Holdings announced an agreement to form a manufacturing joint venture at Ford's plant in Valencia, Spain, with operations expected to begin in the first half of 2027, pending regulatory approvals.

Under the proposed ownership structure, Ford will hold a 66% stake in the new entity and Geely Auto will hold 34%. The venture will produce Ford and Geely multi-energy passenger vehicles for European markets.

The Valencia plant, which has a potential annual capacity of about 500,000 vehicles, will produce four new models starting in 2028: a new member of the Ford Bronco family, an all-new Ford multi-energy crossover jointly developed with Geely, and two electric Geely-branded SUVs. Production of the existing Ford Kuga will continue without interruption during the transition.

The new Ford crossover is part of a plan to bring five new passenger vehicles to European markets by 2029.

"This JV with Ford in Europe reflects our commitment to open, collaborative product development as part of our growth strategy," said Alex Nan, Vice President of Geely Auto Group.

Jim Baumbick, President of Ford of Europe, said the partnership is intended to "fully utilize a best-in-class plant with a great workforce and match the industry's new cost benchmark."

According to a press release, the two companies' relationship dates to 2010, when Ford sold Volvo Cars to Geely. Geely Auto reported overseas sales of 474,228 vehicles in the first half of the current year and cumulative sales of 3,024,567 units in 2025.