Ford and Geely will build EVs together at Ford’s plant in Spain. Ford owns 66%, Geely 34%.

Ford and Geely announced a manufacturing joint venture on Thursday that will produce electric vehicles at Ford’s plant in Valencia, Spain. Ford will own 66% of the venture, Geely 34%. Pending regulatory approvals, operations begin in the first half of 2027, with the first new vehicles rolling off the line in 2028. The plant will continue making the Ford Kuga in the interim.

The joint venture will produce four models: a new electric crossover for Ford, a new member of the Bronco family, and two electric Geely SUVs. The partnership addresses what the companies called “the new realities of the European market: intense global competition, relentless cost pressure and tightening regulation.” Ford’s relationship with Geely dates to 2010, when Ford sold Volvo Cars to the Chinese automaker. Now they share a production line.

Geely stopped building new factories earlier this year, choosing instead to use Volvo’s existing plants and partnerships with Ford and Renault to manufacture abroad. The Valencia JV is the most concrete result of that strategy. Stellantis has been expanding its partnership with China’s Leapmotor into Europe, and Volkswagen has said it is open to sharing under-utilised European factories with Chinese brands. Legacy automakers that spent decades competing with Chinese companies in China are now inviting them into their own factories to survive in Europe.

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The timing is loaded. A US Senate committee approved legislation on Tuesday to toughen a ban on Chinese automakers entering the American market. Ford CEO Jim Farley has publicly praised Chinese automakers for their speed and products while simultaneously lobbying to keep them out of the US. The Spain JV lets Ford access Geely’s EV technology and cost structure in Europe while maintaining the political distance Washington demands. Chinese car sales in the UK jumped from 384 in 2015 to 285,000 last year, and Geely’s VP Alex Nan said the venture is “building cars in Europe, for Europe, alongside a trusted partner.” Whether European regulators and consumers see it that way will determine whether the model scales.