CEO of Ford Jim Farley and CEO of Renault Group Francois Provost respond during a property league arsenic Renault Group and Ford denote the enactment of a strategical concern for rider and commercialized vehicles, successful Paris, France, Dec. 8, 2025.
Tom Nicholson | Reuters
Renault volition jointly make small, cheaper electrical vehicles for Ford for the European marketplace and volition besides squad up to nutrient commercialized vans to chopped costs and fend disconnected rising contention from Chinese rivals, the companies said connected Tuesday.
"We cognize we're successful a combat for our lives successful our industry," Ford CEO Jim Farley told reporters successful Paris connected Monday up of the announcement, erstwhile describing Ford's effect to the menace posed by cheaper Chinese competition. "There is nary amended illustration than present successful Europe."
Europe's accepted automakers look an influx of Chinese rivals from BYD to Changan and Xpeng.
Filling a spread successful the lineup
As portion of the Ford-Renault partnership, the archetypal of 2 planned tiny EVs - to beryllium produced astatine a Renault works successful bluish France - volition scope European car showrooms successful 2028. They volition beryllium smaller than immoderate Ford plans for the U.S. marketplace and capable a spread successful the automaker's lineup, Farley said.
The 2 automakers volition besides jointly make Renault and Ford marque vans for Europe.
In a lawsuit note, Oddo-BHF expert Michael Foundoukidis wrote that the woody allowed Renault to offset its fixed costs and make gross portion offering "a capital-efficient way to marketplace for affordable EVs" for Ford.
"More broadly, this concern underscores the increasing necessity for 'pragmatic cooperation'," betwixt accepted automakers to antagonistic lower-cost Chinese competition, helium wrote.
A powerhouse for airy commercialized vehicles
"Together we tin make a powerhouse of LCV successful Europe that would beryllium precise hard for the Chinese to vie with," Farley said.
Although determination are fewer Chinese marque vans connected merchantability successful Europe, Farley said the 2 companies "compete with them straight each day" successful emerging markets.
"The Chinese volition travel soon and that's wherefore I don't privation to wait," said Renault CEO Francois Provost.
The concern was formed aft a Renault squad visited Ford's Detroit office successful March. Both Farley and Provost said the 2 automakers bash not program to merge.
Ford's stock of the European rider car marketplace has astir halved successful Europe from 6.1% successful 2019 to 3.3% successful the archetypal 10 months of this twelvemonth arsenic it has pulled backmost from rider conveyance sales. As portion of a bid of restructurings, the institution has chopped jobs and this twelvemonth closed its Saarlouis works successful Germany.
Given the withdrawal of EV enactment from U.S. President Donald Trump's administration, the No. 2 U.S. automaker faces the dual disbursal of investing successful combustion-engine models and costly caller EV technology.
Using Renault's EV platforms with Ford designs should assistance the U.S. automaker to vie successful Europe's electrical car marketplace against accepted automakers specified arsenic Volkswagen arsenic good arsenic the Chinese.
Ford already produces 2 EV models successful Europe connected a Volkswagen level and makes vans with the German automaker. Ford CEO Farley said the Renault concern volition complement its existing 1 with Volkswagen.
The French automaker besides develops vans with Nissan and Volvo Group.
Europe's smallest mainstream automaker
Renault is Europe's smallest mainstream automaker and does not merchantability vehicles successful China oregon the United States - the world's 2 biggest car markets - truthful the Ford concern boosts its manufacturing standard to little costs.
The French carmaker is actively seeking partnerships to marque fuller usage of its factories and trim the load of processing caller EVs.
In 2026, Renault volition nutrient 2 vehicles utilizing platforms from China's Geely successful Brazil and is successful talks with much automakers, including China's Chery, to jointly nutrient and merchantability cars.
"Our ambition ... is to amusement that successful Europe we tin nutrient EV cars successful Europe arsenic competitively arsenic anyone, including the Chinese," Renault's Provost said.
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