Putin receives North Korean foreign minister and praises support in conflict

A strategic alliance

Ford and China’s Geely Auto announced an agreement to jointly manufacture low- or zero-emission vehicles at a Ford plant in Valencia, Spain. The alliance seeks to reactivate Ford’s offer in Europe and compete with Chinese manufacturers that dominate the global market.

If it receives regulatory approval, Ford will own two-thirds of the joint venture; Geely, also owner of Volvo and Polestar, will control the rest.

Planned vehicles

Both companies plan five models. Ford will continue production of the Kuga plug-in hybrid and will launch a new Bronco in 2028. Geely will build two electric trucks at the plant, the first also in 2028. In addition, they will develop a “multi-energy” crossover that will hit the market that same year.

“The joint venture addresses the new realities of the European market—intense global competition, relentless cost pressure and increasingly strict regulations,” said a statement from the two companies.

Context of the decision

Ford has lost ground in Europe: from selling more than a million vehicles a decade ago, last year it sold less than half a million. The Valencia plant has capacity for 500,000 cars annually, but its production fell below 100,000 in 2025.

The alliance reduces financial pressure by sharing costs. Ford and Geely already have history: Ford sold Volvo Cars to the Chinese company in 2010.

“This deal provides a roadmap for how traditional manufacturers can survive and thrive in Europe,” said Jessica Caldwell, director of analytics at Edmunds. “Ford gains scale and cost efficiencies; Geely a shortcut to avoid EU tariffs.”

Challenges in the US

Meanwhile, in the United States, Donald Trump’s administration has weakened fuel efficiency standards and eliminated tax credits for electric vehicles. This creates uncertainty, but also drives manufacturers like Ford to look for opportunities in Europe.

“Like GM, Ford has been reducing its dependence on Europe. Now, with Geely, it can have new products designed for that market without assuming the entire development cost,” said Sam Fiorani, vice president of AutoForecast Solutions.

Chinese automakers, with government subsidies, have gained ground in Asia, Latin America and parts of Europe. The alliance with Geely not only expands China’s presence in local European production, but also helps keep Ford workers on the assembly line.

Yemen’s Iran-backed Houthis attacked two Saudi oil tankers in the Red Sea. Brent surpassed $100 a barrel, its highest level since May. The conflict threatens to close a second key trade route, following Iran’s blockade of the Strait of Hormuz.

Military and economic escalation

The United States intensified its attacks against Iran for the twelfth consecutive night. President Donald Trump warned of “significant military punishment” if the Houthis persist. “If they do this again, the United States will hold Iran responsible,” he wrote on social media.

The price of Brent crude oil rose more than 6% on Thursday. Last week, the Houthis announced a blockade of Saudi-linked shipping through the Bab el-Mandeb Strait. 12% of world trade and a quarter of container traffic pass through this passage.

The rebels claimed to have hit the Encelia and Layla oil tankers, setting fires. No victims were reported. Lloyd’s List Intelligence said the attacks represent a “double blow” for Saudi oil shipments, which have already diverted millions of barrels via onshore pipeline.

UN Secretary General António Guterres warned that the region is being dragged into an increasingly widening circle of confrontation. “Diplomacy is the only way forward,” he told the Security Council.

Regional reactions

Iraqi Prime Minister Ali al-Zaidi traveled to Tehran to sue for peace and vowed not to allow his territory to be used against Iran. An Arab diplomat, on condition of anonymity, noted that the Gulf states are pessimistic about an exit.

Iran maintains its “tit for tat” policy in the face of US attacks. Secretary of State Marco Rubio responded that Trump’s policy is “head for an eye.” Meanwhile, the Iranian Ministry of Health reported 55 deaths and 629 injuries since US bombing resumed on June 27.

Jordan intercepted three missiles and six drones. Kuwait reported a drone attack on its border with Iraq, without casualties. The war remains unpopular among Americans, reflected in a symbolic vote in the House of Representatives to stop it.

The president of Ecuador, Daniel Noboa, revealed that he held conversations with the elected leaders of Colombia and Peru, Abelardo de la Espriella and Keiko Fujimori. From these dialogues, preliminary agreements emerged on two fronts: border security and energy supply.

In terms of security, Noboa raised the need for a greater military presence of the armed forces of both countries on their respective borders with Ecuador. “Their presence at the border is going to be crucial,” he said in a radio interview. The border area is the focus of activities of drug trafficking groups linked to international cartels. According to the UN, 80% of the narcotics that enter Ecuador come from Colombia and the rest from Peru. The president had previously pressed a tariff war against Colombia, without receiving a response, and recently suspended it following a resolution from the Andean Community.

Regarding energy, Colombia will resume the sale of electricity to Ecuador. Noboa indicated that they will be able to receive up to 380 additional megawatts with a binational rate of about 30 cents per kilowatt/hour. The sale had been suspended by President Gustavo Petro in response to tariffs imposed by Ecuador. Now, with the agreement, the flow resumes. Ecuador faces a dry season that reduces hydroelectric generation – which provides 75% of electricity – and registers a deficit of at least 800 megawatts. At the end of 2024, Ecuadorians suffered blackouts of up to 14 hours a day due to the worst drought in six decades.

With Peru, the agreement consists of the provision of gas to generate electricity more cheaply in Ecuador. “That way we truly work together,” Noboa concluded.

The agreements reflect the political affinity between Noboa, De la Espriella and Fujimori, with a conservative profile, and seek to address two simultaneous crises: insecurity linked to drug trafficking and the energy emergency.