Ford to Collaborate with Renault in Making Affordable EVs

Ford and Renault have announced a new partnership to develop small and affordable electric vehicles (EVs) for the European market. The collaboration also includes plans to produce commercial vans together. The move comes as both automakers face growing competition from Chinese carmakers, who are offering lower-cost EVs in Europe.

Ford’s CEO, Jim Farley, described the situation as a “fight for survival” in the automotive industry. He said that cheaper Chinese EVs are a serious threat to traditional automakers in Europe. Renault’s CEO, Francois Provost, agreed and noted that European companies must act quickly to remain competitive.

As part of the partnership, the first small EV is expected to reach European showrooms by 2028. These cars will be smaller than any of Ford’s EVs in the United States and will fill a gap in Ford’s current lineup. The collaboration will allow both companies to share resources, reduce production costs, and make EVs more affordable for European customers.

In addition to EVs, Ford and Renault plan to jointly develop light commercial vehicles for Europe. Farley explained that the partnership will create a strong presence in the commercial vehicle market, making it harder for Chinese competitors to enter this segment. While there are currently few Chinese vans in Europe, the two CEOs said they anticipate increased competition in the near future.

Ford has been facing challenges in Europe, where its share of the passenger car market has fallen from 6.1% in 2019 to just 3.3% in 2025. The company has also closed its Saarlouis plant in Germany and cut jobs as part of a series of restructurings. By using Renault’s EV platforms, Ford hopes to reduce development costs and better compete with both traditional European automakers like Volkswagen and emerging Chinese rivals.

Renault, Europe’s smallest mainstream automaker, also benefits from the partnership. The company does not sell cars in China or the United States, so collaborating with Ford allows it to increase production scale and make better use of its factories. Renault has been seeking partnerships to lower the cost of developing new EVs and improve factory efficiency.

This agreement follows a visit by Renault’s team to Ford’s Detroit headquarters earlier this year. Both companies emphasized that this is a strategic collaboration, not a merger. The partnership shows the growing importance of cooperation among traditional automakers to meet the challenges of an evolving global car market.

By working together, Ford and Renault aim to produce affordable and competitive EVs in Europe, ensuring they remain strong players in a market increasingly influenced by Chinese competitors.

Chinese EV makers like NIO Inc. (NYSE: NIO) appear to have the upper hand in the global auto market, and Western manufacturers like Ford are having to respond to the commanding lead that their Chinese rivals are taking in many markets.

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