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News

Ford Confirms New SUV Based on Geely’s Electric Vehicle Platform

Ford is preparing a new compact SUV that could mark one of the most unexpected collaborations in the European automotive industry. The upcoming model will use Geely’s Global Intelligent Electric Architecture (GEA), combining Ford’s design and brand identity with technology developed by one of China’s largest automotive groups.

The new details shed further light on a strategic partnership between Ford and Geely that is set to reshape production at Ford’s Valencia factory in Spain. The agreement, finalized in July, will see Geely begin manufacturing vehicles at the Ford-owned facility, which has operated significantly below its potential capacity for several years.

The partnership is expected to bring new investment and production activity to the Spanish plant while giving both manufacturers access to technologies and manufacturing capabilities that would be more difficult to develop independently.

Ford’s New SUV Will Be Based on Geely’s GEA Platform

The biggest revelation is that Ford will use Geely’s Global Intelligent Electric Architecture for a new compact crossover.

Geely Auto Group chairman An Conghui confirmed the plan during an earnings call, according to Automotive News. The GEA platform already underpins several Geely vehicles, including the electric EX5 and plug-in hybrid Starray.

For Ford, adopting the architecture provides access to a modern platform designed to accommodate multiple powertrain configurations. That could allow the new SUV to be offered with both electrified hybrid technology and a fully electric powertrain.

Ford has described the vehicle as a “multi-energy” compact crossover, suggesting that the company is deliberately avoiding an all-electric-only strategy.

That approach could prove particularly important in Europe, where demand for electric vehicles continues to develop unevenly and manufacturers are increasingly looking at flexible platforms capable of supporting several types of powertrains.

Rally-Inspired Styling Could Set the Ford Apart

Although the new Ford SUV will share its underlying architecture with Geely models, Ford appears determined to give it a distinct identity.

The company has indicated that the crossover will feature “rally-bred” styling. That description suggests a more aggressive and performance-oriented design than the typical compact electric SUV.

Ford has a long history of leveraging rally-inspired design and engineering for its road cars, particularly through models such as the Ford Puma and various performance-oriented derivatives. The new vehicle could therefore bring some of that visual character into Ford’s next generation of electrified compact SUVs.

Importantly, sharing Geely’s platform does not mean the Ford will simply be a rebadged Geely.

Instead, the partnership appears to follow a growing industry trend in which manufacturers share expensive underlying technologies while developing distinctive exterior designs, interiors, software and driving characteristics for their respective brands.

Geely Will Build Vehicles at Ford’s Valencia Factory

The partnership is particularly significant because Geely will manufacture vehicles at Ford’s Valencia plant.

Ford’s Spanish factory has been operating well below its annual production capacity for several years. Bringing Geely products to the facility could therefore provide a major boost to utilization and help secure the plant’s long-term future.

The all-electric Geely EX2 is expected to be among the first Geely models produced at Valencia, although it will not be the only vehicle manufactured there.

Geely has previously confirmed plans to build two new-energy models at the Spanish facility, with the first expected to enter production in 2028.

The company has also stated that the joint venture is expected to produce three Ford-branded multi-energy vehicles, although it has not yet revealed the complete lineup.

That leaves open the possibility that Ford and Geely are planning a broader product strategy than the single compact crossover currently known.

Ford Bronco SUV Will Join the Valencia Lineup

The new Geely-based Ford SUV will reportedly be built alongside another important Ford model: a Bronco-branded SUV.

The Bronco model is expected to arrive around 2028, although it will use a different platform from the Geely-based crossover.

That distinction is important because it suggests Ford is pursuing two separate SUV strategies at Valencia. One will rely on Geely technology and focus on a compact, multi-energy crossover, while the other will use a separate architecture and carry the increasingly valuable Bronco name.

Ford has been expanding the Bronco family as it seeks to capitalize on growing demand for rugged SUVs with strong brand identities.

Adding another Bronco-branded vehicle could give Ford an opportunity to compete in another segment while preserving the distinctive positioning of the Bronco name.

Why Ford and Geely Are Working Together

The Ford-Geely partnership reflects a broader transformation taking place across the global automotive industry.

Developing new electric platforms, batteries, software architectures and manufacturing systems requires enormous investment. At the same time, automakers are under pressure to reduce costs and bring new vehicles to market faster.

Strategic partnerships can help manufacturers spread those costs while accessing technology that might otherwise take years to develop.

For Geely, the agreement represents an opportunity to expand its manufacturing footprint in Europe and strengthen its presence in the European market.

For Ford, the partnership provides access to Geely’s modern GEA architecture while allowing the company to use an existing European production facility more efficiently.

Geely Auto Group vice president Alex Nan described the cooperation as an important step toward greater collaboration between the two companies and said it would further strengthen Geely’s European presence.

What We Know About Ford’s New Geely-Based SUV

At this stage, Ford has not revealed the vehicle’s name, final design, pricing or complete technical specifications.

However, several key details are now emerging.

The new Ford SUV is expected to be:

  • A compact crossover
  • Based on Geely’s Global Intelligent Electric Architecture
  • Available with multi-energy powertrains
  • Expected to include hybrid and fully electric versions
  • Designed with rally-inspired styling
  • Built at Ford’s Valencia factory in Spain
  • Expected to enter production as part of the companies’ broader 2028 strategy

The use of Geely’s GEA platform could also give Ford considerable flexibility when determining battery sizes, electric powertrains and hybrid configurations.

More technical information should emerge as development progresses.

A Potentially Important New Chapter for Ford in Europe

Ford and Geely’s Spanish partnership is more than a simple manufacturing agreement. It represents a significant change in how two major automotive groups are approaching the European market.

Ford gains access to Geely’s electric vehicle technology and a flexible vehicle architecture, while Geely gains additional European manufacturing capacity and a deeper industrial presence on the continent.

The biggest question now is how Ford will translate Geely’s technology into a vehicle that feels unmistakably like a Ford.

If the company succeeds, the new crossover could become one of the most interesting examples of cross-border automotive cooperation in the next generation of European vehicles.

With production expected to begin around 2028, Ford’s Geely-based SUV is still several years away. But the combination of Ford’s rally-inspired design language, Geely’s GEA platform and production in Spain could make this one of the more closely watched new Ford models as the European automotive market enters a rapidly changing era.

Source: Auto News

News

Volkswagen Faces Another Painful Restructuring as Costs Put German Giant Under Pressure

Volkswagen is heading into another difficult chapter as the German automaker prepares for a fresh round of cost-cutting measures. Volkswagen Group CEO Oliver Blume has warned employees that the company’s financial situation is “more than critical,” highlighting the scale of the challenges facing one of the world’s largest car manufacturers.

The latest restructuring is not simply about selling more cars. Volkswagen’s biggest problem is its cost structure, which has become increasingly difficult to defend as competition intensifies across the global automotive industry. The rise of Chinese automakers, in particular, has put additional pressure on established European manufacturers that are struggling with higher labor, production and operating costs.

According to a former Porsche CEO, Volkswagen’s overhead costs remain more than 30 percent higher than those of comparable competitors. For a company operating on enormous volumes, that difference can translate into billions of euros in additional costs and put significant pressure on profitability.

Volkswagen’s Profit Margin Is Not High Enough

Volkswagen currently has an operating margin of less than 4 percent. Blume considers that result relatively respectable given the difficult market environment, but the Volkswagen Group CEO has also made it clear that the figure is not sufficient to secure the company’s long-term future.

The problem is particularly serious because the automotive industry is undergoing one of its biggest transformations in decades. Carmakers are investing enormous amounts of money in electric vehicles, batteries, software, autonomous driving technologies and new production systems, while simultaneously facing weaker demand in some markets and increasingly aggressive competition from Chinese brands.

A company with high fixed costs and a relatively thin operating margin has far less room to absorb these pressures.

Volkswagen therefore needs to become significantly more efficient if it wants to maintain its position among the world’s leading automakers.

Volkswagen Layoffs Could Be Larger Than Previously Expected

Reports suggesting that Volkswagen could potentially double the number of planned job cuts have generated considerable attention in recent weeks. However, Blume’s message to employees suggests that these figures should not necessarily be interpreted as a final prediction of how many people will lose their jobs.

Instead, the larger number represents a theoretical calculation.

Volkswagen is effectively estimating how many positions would have to disappear if the company attempted to close the entire cost gap with its competitors without changing labor costs.

That distinction is important.

The figure is designed to demonstrate the magnitude of Volkswagen’s cost disadvantage rather than announce a final number of layoffs. The actual restructuring could ultimately involve a combination of workforce reductions, productivity improvements, changes to working arrangements, lower overhead, streamlined management structures and other efficiency measures.

Nevertheless, the warning underscores just how significant the financial challenge has become.

Four German Volkswagen Plants Still Have a Future

There is at least some positive news for Volkswagen employees in Germany.

Blume reportedly told workers that no final decision has been made to close four German factories that have been considered vulnerable in the long term: Zwickau, Emden, Hanover and Neckarsulm.

For now, those plants remain part of Volkswagen’s future.

That does not mean their positions are guaranteed indefinitely. If production volumes fall significantly and factories become seriously underutilized, Volkswagen could eventually be forced to reconsider their future.

The issue is particularly important because maintaining large manufacturing facilities is expensive. A plant designed to produce hundreds of thousands of vehicles can become financially challenging when production volumes decline and the facility operates substantially below capacity.

Volkswagen therefore faces a delicate balancing act: preserve industrial capacity and employment in Germany while simultaneously reducing costs enough to compete globally.

Volkswagen Is Also Cutting the Number of Models

The restructuring goes beyond factories and employees.

Volkswagen Group is also looking at the complexity of its vehicle portfolio. The company reportedly plans to eliminate up to 50 percent of its current models while reducing the number of available vehicle configurations and options by as much as 75 percent.

At first glance, reducing the number of models may appear counterintuitive for a manufacturer trying to increase sales. In reality, simplifying the lineup can have a significant impact on manufacturing efficiency.

Every additional model, engine, trim level, body style and option creates additional complexity throughout the production and supply chain.

Fewer configurations can mean simpler manufacturing processes, fewer components, more efficient purchasing and logistics, easier inventory management and potentially lower development costs.

For Volkswagen, reducing complexity could therefore become one of the most important elements of its restructuring strategy.

Chinese Automakers Are Changing the Competitive Landscape

The pressure on Volkswagen cannot be separated from the rapid expansion of Chinese automotive manufacturers.

Companies from China have become increasingly competitive in electric vehicles, batteries, software and manufacturing efficiency. Some have also demonstrated an ability to develop and launch new models faster than traditional European automakers.

This creates a particularly difficult situation for Volkswagen.

The German company has a huge industrial footprint, thousands of employees and decades of manufacturing infrastructure. Those assets have historically been major competitive advantages. But in a rapidly changing automotive market, they can also become expensive liabilities if production volumes fall or consumer preferences shift faster than expected.

The challenge is no longer simply building good cars.

Volkswagen needs to build them efficiently, competitively and profitably.

The Volkswagen Restructuring Is About More Than Job Cuts

The biggest takeaway from Volkswagen’s latest restructuring is that the company is not simply trying to reduce its workforce.

The real objective is to fundamentally lower the cost of doing business.

That means reducing unnecessary complexity, improving productivity, simplifying the model range, lowering overhead expenses and making factories more efficient. Job reductions may be part of that process, but they are only one component of a much larger transformation.

Volkswagen has enormous scale and some of the world’s most recognizable automotive brands. The Group controls Volkswagen, Audi, Porsche, Škoda, SEAT/Cupra, Bentley, Lamborghini and other important automotive businesses.

That scale gives the company significant technological and purchasing advantages. But scale only works in its favor when the underlying cost structure is competitive.

Volkswagen Has Little Room for Error

The next few years could prove critical for Volkswagen.

The company is simultaneously dealing with the transition to electric vehicles, intense competition from China, high production costs, pressure on margins and the need to simplify an enormous product portfolio.

At the same time, Volkswagen must avoid damaging its strongest assets: its brands, engineering capabilities, manufacturing expertise and global customer base.

The challenge is finding the right balance between cutting costs and continuing to invest in the technologies that will define the next generation of automobiles.

If Volkswagen succeeds, the restructuring could create a leaner and more competitive company capable of responding to the changing global market.

If it fails, the consequences could extend well beyond job cuts. Factory utilization, model availability and Volkswagen’s position in the global automotive industry could all come under increasing pressure.

For now, the message from Oliver Blume is unmistakable: Volkswagen knows it has a serious cost problem, and the company is preparing to make difficult decisions to fix it.

The coming years will determine whether those measures are enough to restore Volkswagen’s profitability and keep Germany at the heart of its manufacturing strategy.

Source: Reuters

News

Europe’s EV Market Surges 51% as Electric Cars Reach 25% Market Share

Europe’s electric vehicle market is accelerating at a remarkable pace. Electric car sales jumped 51 percent in July 2026 compared with the same month last year, pushing EVs to a 25 percent share of the European new-car market, according to Dataforce.

The figures, based on 98 percent of new-car registrations across the European Union, the United Kingdom, Norway, Switzerland and Iceland, highlight how quickly electrification is reshaping the European automotive industry.

The momentum is not limited to a single month. During the first seven months of 2026, electric vehicle sales increased 37 percent year over year, significantly outperforming the broader European car market.

The overall European automotive market grew 4.1 percent in July and 5.7 percent between January and July, meaning battery-electric vehicles are expanding considerably faster than the market as a whole.

Electric Cars Are Growing Faster Than Hybrids

Electric vehicles are currently gaining ground faster than both plug-in hybrids and conventional hybrids.

Plug-in hybrid sales increased 15 percent in July compared with the same month in 2025, while conventional full-hybrid registrations climbed 9 percent. By comparison, battery-electric vehicle sales surged 51 percent.

Several factors are helping drive the shift. Higher fuel prices are making traditional gasoline and diesel vehicles more expensive to operate, while the European market now offers a much wider selection of electric cars across different price points and vehicle segments.

Automakers are also introducing new EVs at a rapid pace, giving consumers more alternatives than ever before.

France and Germany Drive Europe’s EV Boom

France and Germany are playing a central role in Europe’s electric vehicle expansion, with both markets recording strong EV registration numbers.

France reached an electric vehicle market share of 35 percent in July, with more than 44,000 electric vehicles registered during the month.

Germany was even larger in absolute terms. Fully electric vehicles accounted for 29.3 percent of the German market in July, with almost 79,000 registrations.

Together, the two countries demonstrate the scale of Europe’s ongoing transition from combustion engines toward electrified transportation.

The numbers are particularly significant because France and Germany are not niche automotive markets. They are two of Europe’s largest vehicle markets and home to some of the continent’s most important automakers.

277,006 Electric Vehicles Registered in July

Across Europe, a total of 277,006 electric vehicles were registered in July 2026.

The monthly sales race was particularly interesting, with the Škoda Elroq taking the top position. The Volkswagen ID.4 finished second, while the Renault 5 E-Tech secured third place.

However, the picture changes when sales are accumulated over the first seven months of the year.

Tesla’s Model Y remains Europe’s best-selling electric vehicle in 2026 so far, with 115,759 registrations. That represents a 55 percent increase compared with the same period last year.

The Škoda Elroq occupies second place with 67,679 registrations, while the Tesla Model 3 ranks third with 57,086 units.

The results show that Tesla continues to have a substantial presence in Europe’s EV market, but increasingly strong competition from established European manufacturers is changing the landscape.

Škoda Elroq Emerges as a Major EV Success

The Škoda Elroq is one of the most notable performers in Europe’s electric vehicle market.

Its first-place finish in July demonstrates the growing strength of Volkswagen Group’s broader electric vehicle strategy and Škoda’s ability to compete in one of the industry’s fastest-growing segments.

The Elroq combines the practicality expected from a compact European SUV with a fully electric powertrain, making it particularly well suited to a market where SUVs and crossovers continue to dominate consumer demand.

Its performance also illustrates how Europe’s EV market is becoming increasingly competitive. Tesla is no longer operating in a market dominated by a small group of electric-only manufacturers. Traditional automakers are bringing increasingly capable electric models to market at a much faster pace.

Chinese Automakers Are Making a Major Move in Plug-In Hybrids

While European manufacturers are making significant progress with battery-electric vehicles, Chinese automakers are becoming increasingly influential in Europe’s plug-in hybrid market.

European plug-in hybrid sales reached 125,530 vehicles in July, representing a 15 percent year-over-year increase.

Chinese brands accounted for 34 percent of the plug-in hybrid market in July, with Chinese models occupying almost half of the top 10 best-selling plug-in hybrids.

The BYD Seal U was the best-selling plug-in hybrid in Europe during July, followed by the BYD Atto 2. The Jaecoo 7 also performed strongly, finishing fourth.

One important advantage for Chinese manufacturers is the European tariff structure. Unlike battery-electric vehicles imported from China, Chinese plug-in hybrid models are not subject to the same increased import tariffs applied to certain Chinese-made EVs.

That allows Chinese brands to compete aggressively on price while offering European consumers increasingly sophisticated electrified vehicles.

BYD Leads the Plug-In Hybrid Market in 2026

Looking at the first seven months of 2026, Chinese manufacturers dominate the plug-in hybrid sales rankings.

The BYD Seal U is currently in first place, followed by the BYD Atto and Jaecoo 7.

The development represents an important shift in Europe’s automotive market.

For years, European manufacturers dominated the continent’s premium and mainstream vehicle segments. Chinese automakers are now demonstrating that they can compete not only with battery-electric vehicles but also with plug-in hybrid technology.

This could become increasingly important as European consumers look for electrified vehicles without completely abandoning the flexibility of an internal-combustion engine.

Europe’s EV Competition Is Getting Serious

The latest European car sales figures reveal two major trends.

First, electric vehicles are growing substantially faster than the overall automotive market. A 51 percent increase in July and 37 percent growth during the first seven months of 2026 indicate that EV adoption is moving beyond the early-adopter phase.

Second, competition is becoming much more intense.

Tesla remains a major force, with the Model Y leading the year-to-date EV rankings. Volkswagen Group brands are gaining ground, with the Škoda Elroq demonstrating strong demand. Renault is also benefiting from renewed interest in compact electric cars with the Renault 5 E-Tech.

At the same time, Chinese manufacturers are establishing a particularly strong position in plug-in hybrids.

What the 2026 European EV Sales Figures Mean

The latest numbers suggest that Europe’s automotive industry is entering a new phase of electrification.

Electric vehicles are no longer simply growing because manufacturers are introducing more models. Consumer demand is also increasing, while fuel costs, expanding charging infrastructure and a broader selection of EVs are making electric mobility more attractive.

The biggest challenge for automakers will now be maintaining this momentum while keeping prices competitive.

For consumers, however, the trend is positive. More manufacturers competing in the EV market means more choice, more technology and potentially lower prices.

If the current growth rate continues, electric vehicles could account for an increasingly significant portion of Europe’s new-car market before the end of the decade.

Europe’s Electric Car Market Is Entering a New Era

The July 2026 figures provide one of the clearest indications yet that electric vehicles are becoming mainstream across Europe.

With 277,006 EVs registered in a single month, a 25 percent market share and 51 percent annual growth, Europe’s electric vehicle market is expanding at a pace that traditional powertrains are struggling to match.

Tesla still leads the year-to-date EV sales race, but Škoda, Volkswagen, Renault and other European manufacturers are closing the gap with increasingly competitive products.

Meanwhile, BYD and other Chinese automakers are rapidly reshaping the plug-in hybrid market.

The European automotive landscape is therefore becoming more competitive than ever. The next stage of the EV transition will not simply be about replacing gasoline and diesel cars with electric alternatives. It will be a battle between global automakers over price, technology, range, charging speed, design and ultimately the consumer.

For European drivers, that competition could make the next few years particularly interesting.

Source: Automotive News