Geely to build eMas 7 twin at Ford's Spain plant in new JV, to skirt around EU local content rules

Ford Motor Company and Geely Auto have agreed to form a joint venture at Ford's manufacturing plant in Valencia, Spain, the two companies announced on 23-July 2026.

Under the agreement, Ford will hold a 66% stake in the joint venture, with Geely holding the remaining 34%. The venture is expected to begin operations in the first half of 2027, pending regulatory approvals.

Geely will produce two fully electric SUVs at the Valencia plant, marking the Chinese automaker's first production facility in Europe. The first Geely-badged model, specifically the Geely Galaxy E5 (sold here as the Proton eMas 7) is scheduled to roll off the line in 2028.

The Spain-manufactured units will help Geely skirt around European local content regulations, thus avoiding some import tariff exposure.

Ford and Geely will also jointly develop a new multi-energy crossover for Ford, offered with fully electric, plug-in hybrid, and extended-range EV powertrain options. Production of the crossover is set to begin in 2028. Separately, Valencia will produce a new compact member of Ford's Bronco SUV family, tailored for European roads, also starting in 2028.

The Ford Kuga plug-in hybrid will continue production at Valencia uninterrupted throughout the transition.

Ford's existing workforce at the plant will become employees of the new joint venture, and the facility is expected to require additional staff as production ramps up. Geely does not plan to bring workers over from China, according to Geely senior vice-president Victor Yang.

"We have the ability to really load up the facility," said Ford's European head, Jim Baumbick. "That's the goal."

The tie-up is part of a broader push by Ford to bring five new passenger vehicles to European showrooms by 2029, and follows an earlier partnership announced in December with Renault to co-develop two small EVs. For Geely, the deal accelerates its European expansion and helps its Valencia-built models sidestep the EU's tariffs on vehicles imported directly from China.