Ford will produce small electric cars and vans with France’s Renault in a bid to lower costs and accelerate development speed to survive the rapid rise of Chinese competition in Europe.
The two carmakers aim to launch the first of their jointly developed EVs in 2028 and expand the partnership to include collaboration in light commercial vehicles, where Ford retains strong market share in the bloc.
“We’re in the fight for our lives and our industry, and [there is] no better example than here in Europe,” Ford chief executive Jim Farley said in Paris, as he announced the partnership. “Together, we can create a powerhouse of light commercial vehicles in Europe. We believe this is a big differentiation compared to the Chinese.”
Smaller sized vehicles such as Renault’s Clio and Ford’s Puma are popular in European cities for their affordability and fuel efficiency but making profits from fully electric models in the segment has been challenging. Chinese rivals meanwhile have mainly focused on slightly bigger models.
The deal with Renault is part of a multiyear review of Ford’s strategy in Europe where it has struggled with the expensive transition to EVs, including higher production costs.
In recent years, it has cut thousands of jobs in Germany and the UK and reduced the number of passenger vehicles in its line-up to focus on its van business and more profitable areas of the highly competitive market.
Farley said the group spent more than a year studying all of its options for its future in Europe before reaching a decision to partner with Renault.
Desperate_Wear_1866 on
Renault and Ford will collaborate together in the European electric car market. Renault’s speed of development plus its focus on small hatchbacks are major advantages for Ford. Both working together would achieve better economies of scale, and would help Ford expand its EV foothold in Europe.
Jacobs4525 on
Historically every company that has partnered with Renault in recent times has not done well, just ask Nissan and Mitsubishi. They aren’t very successful outside Europe.
The fact that Ford feels the need to turn to a dedicated partner with small car expertise is frankly depressing; Ford used to be a dominant player in small cars in Europe and their exit from that market was a huge unforced error.
onethomashall on
Yeah… but it is their own fault they are in a fight for their lives.
They have continually chosen to under invest in innovation, disingenuously engaged with the EV ecosystem, and picked short term over long.
HeavyPanzerPlus1s on
Ford’s best option would be to buy a Chinese electric vehicle manufacturer and then steal all of its technology, like Stellantis did. Many Chinese EV manufacturers are losing money due to fierce competition in China, but their technology is still far superior to that of non-Chinese manufacturers.
5 Comments
Ford will produce small electric cars and vans with France’s Renault in a bid to lower costs and accelerate development speed to survive the rapid rise of Chinese competition in Europe.
The two carmakers aim to launch the first of their jointly developed EVs in 2028 and expand the partnership to include collaboration in light commercial vehicles, where Ford retains strong market share in the bloc.
“We’re in the fight for our lives and our industry, and [there is] no better example than here in Europe,” Ford chief executive Jim Farley said in Paris, as he announced the partnership. “Together, we can create a powerhouse of light commercial vehicles in Europe. We believe this is a big differentiation compared to the Chinese.”
Smaller sized vehicles such as Renault’s Clio and Ford’s Puma are popular in European cities for their affordability and fuel efficiency but making profits from fully electric models in the segment has been challenging. Chinese rivals meanwhile have mainly focused on slightly bigger models.
The deal with Renault is part of a multiyear review of Ford’s strategy in Europe where it has struggled with the expensive transition to EVs, including higher production costs.
In recent years, it has cut thousands of jobs in Germany and the UK and reduced the number of passenger vehicles in its line-up to focus on its van business and more profitable areas of the highly competitive market.
Farley said the group spent more than a year studying all of its options for its future in Europe before reaching a decision to partner with Renault.
Renault and Ford will collaborate together in the European electric car market. Renault’s speed of development plus its focus on small hatchbacks are major advantages for Ford. Both working together would achieve better economies of scale, and would help Ford expand its EV foothold in Europe.
Historically every company that has partnered with Renault in recent times has not done well, just ask Nissan and Mitsubishi. They aren’t very successful outside Europe.
The fact that Ford feels the need to turn to a dedicated partner with small car expertise is frankly depressing; Ford used to be a dominant player in small cars in Europe and their exit from that market was a huge unforced error.
Yeah… but it is their own fault they are in a fight for their lives.
They have continually chosen to under invest in innovation, disingenuously engaged with the EV ecosystem, and picked short term over long.
Ford’s best option would be to buy a Chinese electric vehicle manufacturer and then steal all of its technology, like Stellantis did. Many Chinese EV manufacturers are losing money due to fierce competition in China, but their technology is still far superior to that of non-Chinese manufacturers.