Chinese automakers are rapidly gaining share of global auto sales
Ford Motor Co. and Chinese automotive company Geely Auto announced plans Thursday to jointly manufacture low- and zero-emission vehicles at Ford’s plant in Valencia, Spain, as the American automaker seeks to strengthen its European product lineup against fast-growing Chinese competitors.
The partnership, pending regulatory approval, will be structured with Ford holding a two-thirds stake and Geely holding a one-third stake. Geely, the parent company of brands including Volvo and Polestar, will collaborate with Ford at the Valencia facility, which the company described as a bid to reignite its offerings for the European market.
The announcement comes amid headwinds for the U.S. electric vehicle market and rising geopolitical tensions driven by U.S. tariff policy. In the United States, government measures effectively lock Chinese automakers out of the domestic market. However, American automakers continue to partner with Chinese companies for production in China, and Chinese-made vehicles are increasingly entering markets across North America.
Ford faces stiff competition from fast-moving Chinese companies that are rapidly dominating auto sales across the globe, according to the Associated Press. The joint venture would give Ford a European production base for low- and zero-emission vehicles as the company works to revitalize its product mix in the region.