- Ford and Renault team up to build affordable electric vehicles in Europe.
- Both firms plan joint development of budget EVs and commercial vans.
- Partnership targets stronger competitiveness against rising low-cost Chinese EV makers.
Ford is partnering with Renault Group to produce budget-friendly electric vehicles in Europe as both companies face increasing competition from Chinese manufacturers growing in the area. Renault will assist in the development and manufacturing of two Ford-branded models in northern France, with the initial vehicle anticipated to arrive in showrooms by early 2028, the firms announced. They also agreed to collaboratively investigate the production of vans.
“The reality of the car business is it takes capital, and you have to be competitive on cost,” Ford chief executive officer Jim Farley told reporters during a briefing in Paris. “These are just building blocks to make a successful business in Europe.”
European car manufacturers are working to enhance their competitiveness as companies such as BYD introduce affordable electric and hybrid vehicles in the area. Simultaneously, they are leveraging Chinese technological knowledge to accelerate progress at a lower cost. Renault has depended on its Shanghai R&D center to create the electric Twingo, set to launch for under €20,000 (US$23,299 or $30,220) by next summer.
For Ford, this decision might indicate an additional decrease in its production presence in Europe as the firm reduces output and workforce in an area that has consistently trailed its North American division. At its facility in Cologne, Germany, where Ford produces electric vehicles using a Volkswagen AG platform, the company is laying off hundreds of employees and intends to transition to one production line from the existing two, starting in 2026, it announced in September. It has ceased car production at its Saarlouis factory in Germany.
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Producers are reevaluating EV approaches after their early attempts faltered due to a lack of EV charging infrastructure and models that turned out to be overly costly. Following vigorous industry advocacy, the European Union might reconsider its unofficial prohibition on combustion-engine vehicle sales planned for 2035 because of a slower-than-anticipated transition to electric vehicles. A report from Brussels is anticipated for the end of this month.
In the meantime, car manufacturers are attempting to fix their errors by providing more affordable electric vehicles. In November, Stellantis NV announced it would increase Citroën production due to high demand for the budget-friendly C3 city car. VW is developing affordable electric vehicles, including the ID. Polo is anticipated to be priced under €25,000 when it launches next year. In addition to collaborating on EVs, Ford and Renault plan to join forces to develop and produce vans for both companies.