Geely Automobile Holdings and Ford Motor Company announced an agreement on July 23, 2026, to establish a Europe-focused joint venture (JV) at Ford’s manufacturing facility in Valencia, Spain. This strategic partnership aims to secure the future of the Valencia plant, optimize factory utilization, and deliver a combined lineup of multi-energy vehicles for European markets. The JV represents a significant shift in localized production strategy for both automakers, leveraging shared development costs to enhance operational excellence and provide long-term stability for the local workforce.

The joint venture is structured with Ford Motor Company holding a 66% ownership stake and Geely Automobile Holdings owning 34%. Pending regulatory approvals, the entity is scheduled to officially begin operations in the first half of 2027. The first new vehicles are expected to roll off the production line in 2028. This timeline allows both companies to align their engineering and supply chain logistics before full-scale manufacturing begins.

Production Plans and Capacity

The Valencia plant, already recognized as one of Europe’s most productive automotive facilities, has a potential annual capacity of approximately 500,000 units. The JV will transform this site into a shared, high-tech manufacturing hub. Production plans include three Ford-branded multi-energy vehicles and two electric Geely-branded models.

This diversified output strategy addresses varying consumer preferences across Europe, offering both traditional multi-energy options and fully electric alternatives. By sharing the plant’s infrastructure, both brands can achieve economies of scale that would be difficult to attain independently.

Strategic Context and Growth

For Geely Automobile Holdings, this partnership accelerates its European expansion. The company reported overseas sales of 474,228 vehicles in the first half of 2026, representing a year-on-year increase of 158%. This rapid growth underscores Geely’s status as one of the fastest-growing Chinese automotive brands globally. The collaboration builds on a history of trust dating back to 2010, when Ford sold Volvo Cars to Geely, allowing the latter to protect and revitalize the brand.

Jim Baumbick, president of Ford Europe, emphasized the importance of maintaining a flexible and cost-effective industrial system. He stated that partnering with Geely allows Ford to fully utilize its capable workforce and match the industry’s new cost benchmarks. Alex Nan, Vice President of Geely Auto Group, described the cooperation as a milestone in Geely’s global development, reinforcing its commitment to delivering high-quality vehicles that contribute to Europe’s green future.

What the Numbers Show

The disparity in ownership stakes—66% for Ford versus 34% for Geely—reflects the asset-heavy nature of the arrangement, where Ford contributes its existing Valencia facility. However, the operational impact is balanced through shared production lines. The projected output of five new models by 2028 indicates a strong commitment to product diversity. For Geely, integrating into a European manufacturing base reduces logistical barriers and enhances brand credibility, supporting its aggressive overseas sales growth trajectory observed in the first half of 2026.

Geely Auto Group today announced the launch of the Geely 16-in-1 Intelligent E-Drive, a new-generation 800V electric drive system that will debut on the Geely TT. The system has achieved two Guinness World Records titles, highlighting advancements in energy efficiency and performance consistency. This development marks a step in Geely Auto Group’s strategy to develop more efficient, intelligent, and scalable electric-drive systems.

Developed with support from InfiMotion, the core ecosystem partner of Geely Auto Group, the Geely 16-in-1 Intelligent E-Drive integrates core electric drive hardware and functions into a compact system. This integrated design reduces the weight of the overall system to 75 kg, simplifies the power transmission path, and reduces energy losses during power delivery. The system is built on an 800V high-voltage platform and applies intelligent power optimization technology.

The system achieved a CLTC comprehensive efficiency of 93.8%. In an energy efficiency challenge around Qinghai Lake, the Geely TT, equipped with the Geely 16-in-1 Intelligent E-Drive, recorded measured energy consumption of 8.20 kWh/100 km. This performance set the Guinness World Records title for the lowest energy consumption circumnavigation of Qinghai Lake by a battery electric-powered production saloon/sedan.

Performance Specifications

The Geely 16-in-1 Intelligent E-Drive supports a dual-motor all-wheel-drive configuration with a combined output of 425 kW. This configuration enables 0–100 km/h acceleration in 3.8 seconds. The system uses integrated control and AI-assisted torque management to support faster response, more precise torque delivery, and stable performance under high-load conditions.

To support sustained output, Geely has developed a 54-channel directional cooling technology, which can reduce the maximum motor temperature by up to 15°C. The drive system also uses active lubrication for the shaft and gear structure to help maintain thermal stability during demanding use. The system is engineered around a 5-million-kilometer durability target.

World Record Achievement

In a separate performance challenge, the Geely TT achieved a continuous twin vehicle drift distance over 46 kilometers on a wet surface. This feat secured the Guinness World Records title for the longest continuous twin vehicle drift on a wet surface by electric vehicles. The challenge placed sustained demands on torque response, control precision, and thermal management.

Li Chuanhai, Vice President of Geely Auto Group and President of Geely Automobile Research Institute, said the system strengthens the group's in-house capabilities in electric powertrain development, intelligent control, and advanced manufacturing. He added that this supports the broader strategy of developing safer, smarter, and more efficient new energy vehicles for global users.