Ford and Chinese automotive company Geely Auto announced plans on Thursday to jointly manufacture low- and zero-emission vehicles at Ford's Valencia, Spain factory.The partnership is a bid to reignite Ford’s offerings for the European auto market as the legacy carmaker seeks to compete with the likes of fast-moving Chinese companies that are rapidly dominating auto sales across the globe.It comes amid challenges for the American electric vehicle market and increasing global geopolitical tensions driven by U.S. In the U.S., policy all but locks Chinese firms out of the market — though American automakers still partner with companies in China for production, and Chinese vehicles are making inroads in North America more broadly.The joint venture, pending regulatory approval, will be owned two-thirds by Ford and one-third by Geely, which also owns brands such as Volvo, Polestar and more.The two companies said they will focus on five vehicles.Under the partnership, Ford plans to continue production of the Ford Kuga plug-in hybrid vehicle, as well as a new Bronco SUV, production for which will begin in 2028. Geely plans to make two electric SUVs at the plant, the first of which is also scheduled to begin production in 2028.The automakers said they will also jointly develop a new “multi-energy” crossover model to arrive in 2028.“The joint venture addresses the new realities of the European market — intense global competition, relentless cost pressure and tightening regulation — resetting Valencia to build at the industry’s emerging cost benchmark,” a release from the two companies said.The JV aligns with Ford leadership's stance about being competitive outside its domestic market — yet the automaker's executives have publicly cautioned about Chinese EVs in the U.S.“We leverage global partnerships and even IP (intellectual property) sharing, including with the Chinese (companies), to grow our business around the world,” Ford CEO Jim Farley said in the company's first-quarter earnings call in April.
“How I would think about it is Ford continues to be a global company. We want to have the rights to win around the globe. We need IP and partnerships outside the U.S.
industry itself, we are extremely protective, as we should be.”Chinese firms are gaining ground and expandingChinese automakers have been gaining mom… The first Geely electric SUV to be made in Valencia is the EX5, which is already being sold in Europe. (Geely pic) LONDON: Geely Auto will build two electric SUVs at Ford's factory in Spain and the two firms will jointly develop a new model, they said on Thursday, as rising Chinese automakers race to use traditional carmakers' underutilized factories and get ahead of European local-content rules.
Under a joint venture that will be 66% owned by Ford and 33% by the Chinese firm, the first Geely brand electric SUVs will roll off the Valencia plant's production line in 2028. "We have the ability to really load up the facility," Ford's European head Jim Baumbick told Reuters. "That's the goal." The two automakers had been in talks on a partnership for many months, which were reported by Reuters in February.
Executives said that a long relationship dating back to Geely's purchase of Volvo Cars from Ford in 2010 had helped those talks. Such cooperation with an automaker like Geely would likely not be possible in Ford's home market, where a US Senate committee on Wednesday approved legislation to toughen a ban on Chinese automakers entering the US. Geely Senior Vice President Victor Yang told Reuters that the first electric SUV to be made in Valencia is the EX5, which is already sold in Europe, and the other vehicle the Chinese automaker will make at the plant is still in development.
"We need to rely on strong partners with the right know-how and expertise to support our localization efforts," Yang said. This will be Geely Auto's first production facility in Europe. The deal helps both companies overcome formidable challenges.
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