Ford Motor Company and Geely Automobile Holdings have agreed to form a manufacturing joint venture at Ford's Valencia, Spain, plant to build multi-energy passenger vehicles for the European market. The partnership, announced on July 23, 2026, aims to combine scale and factory utilization to address intense global competition, cost pressure, and tightening regulation in Europe. By pooling production volume, the companies intend to lower the cost of every vehicle built at the Valencia plant while delivering low- and zero-emission vehicles.

Pending regulatory approvals, the joint venture will begin operations in the first half of 2027, with the first new vehicles scheduled to roll off the line in 2028. Under the proposed ownership structure, Ford will own 66% of the new entity and Geely Auto 34%. The Valencia plant, which has a potential annual capacity of about 500,000 vehicles, will continue to produce the Ford Kuga uninterrupted until the new models launch.

The collaboration will produce a lineup of Ford and Geely vehicles tailored for European drivers. Ford will manufacture a new member of the Bronco family and an all-new multi-energy crossover, jointly developed with Geely, both starting in 2028. Geely Auto plans to produce two electric SUVs at the facility, with the first models rolling off the production line in 2028. The venture supports Ford's goal to bring five new passenger vehicles to European showrooms by 2029 and accelerates Geely Auto's European expansion.

Vehicle Production Schedule

Strategic Impact

The joint venture is expected to secure the future of the Valencia plant, provide long-term stability, and create potential for high-tech manufacturing job growth. Alex Nan, Vice President of Geely Auto Group, emphasized the commitment to delivering vehicles with industry-leading features and quality, actively contributing to Europe's green future. Jim Baumbick, President of Ford of Europe, highlighted the partnership as a step toward building a flexible, cost-effective industrial system to match the industry's new cost benchmark.

The collaboration builds on a relationship dating back to 2010, when Ford sold Volvo Cars to Geely. Both companies share a commitment to quality, cost-efficient sourcing, and continuous improvement. The venture aligns with Geely Auto's international expansion, following overseas sales of 474,228 vehicles in the first half of the year, and Ford's strategy of using partnerships to compete with speed, efficiency, and scale in Europe.

Ford Motor Company of Canada, Limited and Unifor-represented hourly employees have ratified a new three-year national collective agreement, reinforcing Ford's long-term commitment to Canada. The agreement, announced on July 19, 2026, covers more than 5,000 employees and delivers economic gains including a 9% general wage increase over the life of the contract. Ford has committed C$1.25 billion (US$900 million) in planned investment across its Canadian manufacturing operations, including C$700 million (US$500 million) for the Essex Engine Plant and C$550 million (US$400 million) for the Oakville Assembly Complex.

Financial Terms and Wage Increases

The ratified agreement provides significant economic benefits for eligible full-time permanent employees. Workers will receive a C$10,000 ratification bonus, while temporary employees are allocated C$2,000. The general wage increases total 9% over the three-year period. Additionally, the contract includes increases to retirement programs, such as raised pension benefit rates, and various benefit improvements. A new adjusted starting base wage for the new hire wage progression schedule has also been established.

Strategic Investments and Operations

Ford's capital injection aims to maximize production capabilities and secure employment. The C$700 million (US$500 million) investment at the Essex Engine Plant (EEP) is designed to maximize 5.0-litre engine production, including a forecasted third shift, and support the expansion of 7.3-litre engine production. The Oakville Assembly Complex receives a previously planned C$550 million (US$400 million) investment over the life of the agreement. These funds build upon the C$5 billion previously invested to transform Oakville into Canada's Super Duty assembly plant and introduce stamping operations.

Leadership and Future Outlook

Ford leadership emphasized the strategic importance of the agreement for North American competitiveness. "This agreement is about investing in our people and Canada's future," said Jim Farley, CEO, Ford Motor Company. He noted that a strong, integrated North American manufacturing system is essential and that a revised USMCA is critical to competing against imports. Bev Goodman, president and CEO, Ford of Canada, highlighted that the agreement recognizes employee skill and dedication while reinforcing Ford's future in Canada, positioning the company to continue investing in operations from Oakville to Windsor.