Ford Motor Company and Renault Group have announced a major strategic partnership. The two automakers will collaborate to develop and produce affordable electric passenger cars and light commercial vehicles for the European market. This alliance represents a decisive move by legacy manufacturers to fiercely compete against the aggressive pricing and market entry of Chinese EV rivals.
Under the signed agreement, Ford will gain access to Renault’s specialized electric vehicle technology. Specifically, Ford will use Renault Group’s Ampere platform to develop two new Ford-branded electric passenger models. This approach allows Ford to accelerate its product pipeline and immediately lower its investment costs in EV development. Ford has already seen its European passenger car market share shrink significantly, declining from 6.1% in 2019 to only 3.3% this year. The deal is central to Ford’s strategy to revitalize its European business.
The first new Ford EV, which many expect to serve as an affordable replacement for the discontinued Fiesta model, is projected to arrive in showrooms in early 2028. Renault will manufacture both Ford-designed cars in its ElectriCity production hub located in northern France. Ford’s CEO, Jim Farley, emphasized that while using Renault technology, the vehicles will retain “authentic Ford-brand DNA” and deliver the company’s characteristic driving dynamics.
The partnership also addresses the commercial vehicle sector. Both companies have signed a Letter of Intent to explore jointly developing and manufacturing specific light commercial vehicles under both the Ford and Renault brands. This LCV collaboration aims to leverage the vast industrial scale and supply chain expertise of both companies. This move will enhance their competitiveness in a segment where both are already major European players.
The urgency for this collaboration stems from the rapid transformation of the European market. Chinese automakers like BYD and Xpeng are rapidly gaining market share. They achieve this success by introducing budget-friendly EV models that often undercut the pricing of established European brands. Ford’s CEO Jim Farley stated that the industry is facing a fight for its survival, especially in Europe. Renault’s Chief Executive, François Provost, echoed this sentiment. Provost noted that combining their industrial scale and EV assets will make both companies more responsive and innovative in the quickly changing market.
For Renault, the partnership provides a significant benefit by boosting the production volume of its Ampere platform. This increased scale will inherently drive down manufacturing costs for the entire Renault EV ecosystem. Renault has actively sought alliances in recent months, demonstrating that collaboration has become a necessary strategy for European automakers to remain profitable and relevant.
This new partnership with Ford builds upon Ford’s existing technology-sharing arrangement with Volkswagen. The new alliance with Renault marks a further commitment to strategic outsourcing and technology sharing as the quickest way to tackle the Chinese price challenge.
