Ford has confirmed that it will not only sell some of its spare European factory capacity to Chinese giant Geely, but that the two companies will collaborate on a new 'multi-energy' SUV crossover model.
Why is Ford working with Geely?
To be blunt, because it has to. We've been seeing growing numbers of deals between European and Chinese car makers, as the Chinese brands want to sidestep EU tariffs by building cars in Europe, and the European brands are keen to use up spare (read: expensive) factory capacity, as well as benefit from the fast-turnaround times of Chinese technological development.
The deal will involve the setting up of a joint-venture company between the two car makers, of which Ford will own 66 per cent, and Geely the remaining 34 per cent.
Where is this all happening?
Ford will essentially share its factory in Valencia, in southern Spain, with Geely as part of this deal. The Valencia plant used to be the home of the Fiesta, and these days it's where Ford makes the Kuga and will, in due course, start to build the European version of the rugged-looking Bronco Sport (which shares a platform with the Kuga) - this will be the first time that a Bronco-badged model has been officially sold in Europe.
Is the Bronco the car that will be shared with Geely?
No, apparently not. The Ford-Geely collaboration will be centred on a third model, a 'multi-energy' crossover that suggests it will be a more compact vehicle than either the Kuga or the Bronco Sport, and will be offered with both fully electric and hybrid power.
Due to arrive in 2028, this new crossover will be, according to Ford: "Engineered with Ford's signature capabilities and driving dynamics, it is part of an aggressive product offensive that will bring five new multi-energy vehicles to Europe by 2029.” Indeed, Ford has claimed elsewhere that this new C-segment crossover will feature 'rally-bred' handling - although as yet there's no indication that it will be replacing the Puma as part of Ford's World Rally Championship plans. Then again, Geely also owns Lotus, so maybe we could be seeing the beginning of a new Ford-Lotus collaboration? It's a tempting thought…
"For nearly 50 years, Valencia has built some of the most-loved cars in our history, and now this team will help build our future”, said Jim Baumbick, President, Ford of Europe. "That's why we're building a flexible, cost-effective industrial system with a capable partner in Geely Auto. Together we can fully utilise a best-in-class plant with a great workforce and match the industry's new cost benchmark. This is all part of Ford's vision to give European drivers rally-bred handling, true off-road capability and multi-energy technology, with a distinct Blue Oval DNA.”
What does Geely get from the deal?
Geely will get crucial factory space in Europe (although, through its ownership of Volvo, it kind of already has that, especially at Volvo's under-utilised plant in the Netherlands) and will build two new models, both presumably based on the same architecture Ford will use. The plan is that only the bare-bones chassis will be shared between Ford and Geely, and that the cars that sit on top will be entirely unique.
"This JV with Ford in Europe reflects our commitment to open, collaborative product development as part of our growth strategy, deepening our local presence and commitment to customers in Europe”, said Alex Nan, Vice President of Geely Auto Group. "We are dedicated to delivering vehicles that European customers will choose on merit: on industry-leading features, on high-quality and on actively contributing to Europe's green future. Put simply: we are building cars in Europe, for Europe, alongside a trusted partner.”
That trust goes back to 2010, when Ford sold Volvo, then a Ford subsidiary, to Geely.
What other new models is Ford planning?
Ford has already announced a collaboration with Renault, which will see a new all-electric replacement for the Fiesta and a compact electric crossover, built on the same platform as the Renault 5 E-Tech and Renault 4 E-Tech, and produced at Renault's factory in Douai. There's also a fifth new model, another electric and hybrid crossover, but details on that car are still rather scant.
Ford will continue to build the Volkswagen-based Explorer and Capri in its Cologne plant in Germany for the time being, but the implication is that the Geely and Renault deals have started the countdown clock on the collaboration with Volkswagen.