Ford and Geely have formed a joint venture at Ford's Valencia plant in Spain, with Geely taking a 34 percent stake. The deal will see Geely based electric SUVs built alongside Ford's own models at the same factory from 2028, a level of cooperation between the two companies that would have looked unlikely a few years ago.
Why it matters here
This is not just a European manufacturing story. Geely's Australian sales are up 494.6 percent year on year in the first half of 2026, one of the fastest growth rates of any brand in the local market. A carmaker expanding that fast at home now has a direct stake in one of Ford's own production lines overseas, which says something about how far the balance of power in the industry has shifted.
Cartell Assessment
When a rival buys into your factory, that stops being straightforward competition and becomes something closer to a partnership with a Chinese accent. Ford gets to keep a plant running and share the cost of building EVs it may otherwise have struggled to justify alone. Geely gets a foothold inside a legacy manufacturer's supply chain and production expertise in Europe. Both sides get something, but it is Geely that walks away with more leverage, especially with sales numbers like the ones it is putting up in Australia right now.
AU Outlook
Nothing about this deal changes what is on sale here today, since the joint venture cars are not due until 2028 and Europe first. Watch whether Geely's local sales momentum keeps building at anything like its current pace, and whether more legacy brands start striking similar manufacturing arrangements with Chinese carmakers as the cost of building EVs alone keeps climbing.
