Ford partners with Chinese automaker to make new cars in Europe
Ford partners with Chinese automaker to make new cars in Europe
Jamie L. LaReau, Detroit Free PressThu, July 23, 2026 at 5:01 PM UTC
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Just days after Ford Motor Executive Chair Bill Ford warned that the U.S. auto industry must be prepared go "toe-to-toe" with the Chinese automakers, Ford is partnering with a Chinese auto company to bring four new vehicles to Europe.
Ford announced on July 23 that the Dearborn automaker and Geely Automobile Holdings, based in Hangzhou, China, have agreed to form a Europe-focused joint venture at Ford’s factory in Valencia, Spain, where Ford makes the Ford Kuga, a small SUV sold in Europe and global markets.
The Detroit Free Press had reported in February that the two parties were in early discussions about Geely possibly using some of Ford's excess factory space in Valencia to produce vehicles for Europe. At the time, the talks also touched on a partnership that could involve vehicles on shared platforms.
Ford said on July 23 the new joint venture will indeed build Ford and Geely "multienergy passenger vehicles for the European market." That means vehicles offered in different powertrains: electric, hybrid or gasoline, giving the automakers flexibility in what they can offer car buyers.
Ford spokesman Dave Tovar told the Detroit Free Press there will be a new multienergy crossover for Ford, a new member for the Bronco family, plus two new all-electric Geely SUVs. All of those vehicles will be built in Europe and sold in Europe, Tovar said. There are no plans to bring any of them to the United States.
If regulators approve the joint venture, Ford said in its statement, production will start next year with vehicles coming to market in 2028.
Reaction to the news
Wall Street called the partnership a good move for Ford. But one Michigan lawmaker slammed the automaker for partnering with the China-based company.
U.S. Representative John Moolenaar, R-Caledonia, who is chairman of the Select Committee on China, denounced Ford's new partnership with Geely saying that Ford is actively helping the Chinese Communist Party to dominate global automotive supply chains and increase the world’s dependence on China.
"This partnership with Geely will further enable China’s decimation of auto markets in Europe as Chinese automakers set their sights on North America," Moolenaar said in a statement. "Ford’s decision is incomprehensible as it seeks protection from Chinese automakers coming to the United States. As I have said before, Ford should work with our nation’s allies, not our adversaries.”
Tovar did not immediately provide a Ford reaction to Moolenaar's criticism.
But others praised Ford for making a shrewd business deal.
"Ford is going after this Europe market looking to take market share at the right time," said Dan Ives, partner and senior managing director at New York-based investment firm, Yorkville Ives. "Smart move in my view."
"It’s interesting Ford will own 66% of the joint venture," Morningstar autos analyst David Whiston said in reaction to the news. "The joint venture will produce new Geely vehicles, which Ford gets a cut of. My main question would be how much EV and software learning can Ford get out of the arrangement."
Chinese vehicles are considered high quality with advanced technology and sell at lower prices — thanks to China's goverment subsidizing many costs. For example, a highly loaded Galaxy M9 three-row plug-in hybrid SUV typically sells for about $26,000 to $36,000 in U.S. dollars.
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Whiston said Ford will benefit by improved utilization and cost absorption out of its Valencia factory, while Geely gets European capacity to avoid tariffs without having to build a new factory.
Tovar said the multienergy SUV co-developed by the two automakers will focus on scale, speed and customer preferences and, "I think we're both going to get learnings from each other on it. It will have the best of Ford and the best of Geely."
Cost-efficient competition
In a statement, Ford noted that Europe is a highly competitive market that has seen tightened regulation, growing operating costs and a new generation of global competitors.
Ford said by pooling production volume, Ford and Geely will maximize the capacity of the Valencia plant and lower the cost of each car built there. The partnership, Ford said in a statement, allows the carmakers to compete at a cost-effective rate while still delivering a quality product and supporting the local Valencia economy.
Until the joint venture is approved by regulators and the four new vehicles can start operations, Ford will continue to build the Kuga at the plant.
“This (joint venture) with Ford in Europe reflects our commitment to open, collaborative product development as part of our growth strategy, deepening our local presence and commitment to customers in Europe,” Alex Nan, vice president of Geely Auto Group, said in a statement. “Put simply: We are building cars in Europe, for Europe, alongside a trusted partner.”
Ford’s partnership with Geely goes back to 2010 when Ford sold Volvo Cars to Geely. But earlier this month, Bill Ford hardened the automaker's stance over the issue of Chinese automakers entering the U.S. market. On July 14 at an Axios event in Washington, D.C., Bill Ford said that Chinese automakers will one day break into the U.S. car market and automakers must be prepared for it.
“We have to go toe-to-toe with China,” Ford reportedly said at the event as reported by the Wall Street Journal. “We can’t expect to keep them out forever, and we have to be able to beat them at their own game.”
Right now, national security restrictions along with 100% tariffs put on imported Chinese automaker vehicles have effectively kept their vehicle sales offshore. That tariff was first imposed by former President Joe Biden and kept intact by President Donald Trump.
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Free Press staff writer Todd Spangler contributed to this article.
Jamie L. LaReau is the senior autos writer at USA TODAY Co. who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
This article originally appeared on Detroit Free Press: Ford partners with Chinese automaker to make new cars in Europe
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