Ford, a U.S. car company, and a Chinese carmaker announced on July 23, 2026, that they will jointly produce low- and zero-emission vehicles at Ford's factory in Valencia, Spain. Ford's partner is Geely Auto, one of several Chinese firms that are taking a growing share of automobile sales worldwide. For Ford, the deal is an attempt to strengthen its position in Europe, where it must now compete with these rivals. These Chinese companies have grown quickly by building high-quality electric and hybrid models at low prices, and they are now moving into Europe.

The joint venture, which still needs official approval, will be two-thirds owned by Ford and one-third by Geely, which also has brands such as Volvo and Polestar. Ford will continue making its Kuga hybrid, while both companies plan new models, the first of which are scheduled for 2028.

Ford has struggled in Europe for years. A decade ago, it sold more than one million vehicles across the continent, but that figure fell below half a million in 2025. Although the Valencia factory can manufacture 500,000 units a year, production dropped under 100,000 in 2025. By sharing costs, the deal should reduce pressure on the company.

Experts see the agreement as a strategy for survival. Jessica Caldwell of Edmunds, an auto research firm, said traditional carmakers can no longer succeed alone and must work with rivals to manage the expensive shift toward electric vehicles.