DETROIT, July 23, 2026 – Shares of Ford Motor Company (NYSE:F) edged lower on Thursday after a joint venture agreement in Spain brought renewed attention to the automaker's roughly 370,000 unused factory slots, stoking worries about plant underutilization.
Ford stock slipped 0.6% to $14.34 in light premarket trading, with volume reaching only 13,974 shares. The decline followed news that the Valencia plant, which has an annual capacity of approximately 500,000 vehicles, operated at just 26% utilization in 2025, according to data from GlobalData. That implies production of roughly 130,000 units last year.
Joint Venture with Geely
Ford and China's Geely Automobile Holdings (HKG:0175) announced a manufacturing partnership with a 66%-34% ownership split, pending regulatory approvals. Operations are expected to begin in the first half of 2027, with new models rolling out from 2028. The Valencia facility will expand from its current single nameplate, the Kuga, to a total of five models under the venture.
Jim Baumbick, President of Ford Europe, said the goal is to "really load up the facility." Bill Russo, CEO of Automobility, noted the deal "reduces fixed cost exposure, keeps the plant alive and effectively monetizes excess capacity."
Capacity and Cost Implications
The investment case hinges on the idle capacity. A 10-percentage-point increase in utilization could accommodate about 50,000 additional vehicles. Ford has stated that pooling volume is expected to lower per-vehicle costs. However, the announcement did not include an investment amount or a specific savings target.
Risks include potential delays in regulatory approval, higher launch expenses, and persistently low demand in Europe. The longer timeline means initial new vehicles are not expected until 2028.
Market Context and Earnings Outlook
Ford closed Wednesday's regular session at $14.42, up 1.1%, and rose 1.6% over the week ending July 17. Through Wednesday, the stock was up 1.3% year-to-date. In contrast, General Motors (NYSE:GM) raised its adjusted EBIT forecast for 2026 to between $14 billion and $16 billion after a strong second quarter, while Ford maintained its guidance of $8.5 billion to $10.5 billion.
Ford is set to report its second-quarter earnings on Tuesday, July 28, at 4:05 p.m. EDT. The Spain venture represents a longer-term play, while near-term attention will focus on the quarterly results as a key catalyst.
Analysts will be watching utilization rates at Valencia as a clear measure of the venture's performance over the long run.
