Ford and Geely announced an agreement on Thursday to establish a Europe-focused joint venture at Ford's Valencia manufacturing hub in Spain, as the two automakers seek to strengthen production efficiency and compete in a rapidly changing European automotive market.

The Dearborn automaker says the collaboration will create scale and plant utilization that protects its future in Europe.

Ford and Geely plan for the joint venture will begin operations in the first half of 2027, with the first new vehicles scheduled to roll off the line in 2028.

Ford Motor Co. in Dearborn announced today that it’s forming a joint venture with Spanish automaker Geely Automobile Holdings to produce multi-energy passenger vehicles for the European market at Ford’s