Ford and Renault have struck a new deal to build small, affordable electric cars for Europe as Chinese automakers increase pressure with affordable EVs.
The partnership focuses on cutting costs, sharing technology, and moving faster in a highly competitive market.
Ford CEO Jim Farley said it was “a fight for our lives” against cheaper Chinese competition.
The American automaker hopes the deal will help reverse its shrinking passenger-car market share in Europe, which fell from 6.1% in 2019 to 3.3% through October this year.
The Continent has seen an increasing number of low-priced Chinese cars, such as BYD, on its roads.
Under the deal, Ford will develop two compact, Ford-branded electric cars using Renault’s EV platforms. The first model will go on sale in Europe in 2028 and will be built at Renault’s factory in northern France. These cars will be smaller than Ford’s US EVs and will fill a major gap in its European lineup.
The deal also covers light commercial vehicles. Ford and Renault will jointly develop vans for Europe under both brands, aiming to build a strong position in a segment where demand remains steady.
For Renault, the deal boosts scale, lowers EV development costs, and supports its push to make competitive electric cars in Europe.