FORD AND RENAULT TEAM UP IN EUROPE TO COMPETE AGAINST LOW-PRICE CHINESE CARS

Ford is turning to French peer Renault to help reboot its European business, in a fresh sign of the upheaval being caused by Chinese automakers outside the U.S.

“We know we’re in a fight for our lives in our industry, and no better example than here in Europe,” Ford Chief Executive Officer Jim Farley told journalists in Paris.

Renault will make two small electric vehicles for the pioneer of car production, the companies said. The partners are also exploring how they might work together on vans, which form the core of Ford’s European business.

The first of the next-generation EVs—to be designed by Ford, co-developed by both companies on a Renault technology platform and built by Renault in northern France—will reach European dealerships in 2028.

Carmakers are increasingly turning to partnerships to save money as different regions embrace different technologies at different speeds. The competition is especially fierce in Europe, where Chinese makers, led by SAIC Motor and BYD, have burst onto the scene with low-cost technology. The market share of Chinese producers jumped collectively to around 6.7% of the European market in the third quarter, according to Schmidt Automotive Research.

Ford has been working on its own EV platform in the U.S. as part of its so-called skunk works project to build a $30,000 electric pickup. But that platform would be too big and expensive to work in Europe, Farley said.

“Frankly, Renault is more competitive,” he added.

Collaborating with Renault marks a fresh start for Ford in Europe after years of downsizing and restructuring.

The U.S. company has been in the region for well over a century, starting in France in 1908. By the 1990s, its Fiesta hatchback had become such a staple of British streets that Ford was almost considered a local brand.

But the company has been losing market share for many years. This year through October, 3.3% of the new passenger cars sold in Europe were Fords, down from 7.2% in all of 2015. Ford has gradually trimmed less profitable, typically smaller products from its lineup to focus on segments where it sees a chance of standing out.

That strategy won’t change even as Ford re-enters the small-car business. “We want to grow, but we will grow in specific segments where we have rights to win,” said Farley.

Ford has also racked up losses with a first generation of EVs designed to meet strict local emissions targets. The shift has been particularly painful as EV sales have taken off more slowly than expected.

Last year, Ford said it would cut 4,000 roles, centered in Germany. In September, it announced a further 1,000 job losses.

“We’ve been through many restructurings, and a lot of hard work. GM left. We decided to stay,” said Farley in summation of the company’s recent history in Europe. General Motors sold its European business in 2017.

The Ford-Renault EV launches starting in 2028 form part of a new wave of products across all powertrain types that Ford hopes will revive its European business in the years ahead under a new leader, Jim Baumbick.

“I’m here to take a fresh wave of product investment and to get our mojo back in Europe,” Baumbick said in an interview. The company’s former product development boss started in the job last month.

Ford has a mixed record of forming partnerships in Europe. Its existing loss-making Explorer and Capri EVs are built in Ford’s factory in Cologne, Germany, using Volkswagen’s EV technology.

VW was early to invest in EVs but its technology now lags behind newer competitors on performance and cost, according to analysts. The partnership, which was struck in 2019 and involves Ford building vans for VW, is unaffected by the Renault deal.

Meanwhile, Farley held up its longstanding production partnership with Turkish industrial group Koç Holding as its most successful operation in Europe in recent times.

Renault’s principal partner for the past quarter-century has been Nissan, in which it owns a roughly 36% stake. But a reset in their strained relationship following the arrest of CEO Carlos Ghosn paved the way for other collaborations, notably with Chinese automaker Geely.

Ford and Renault ruled out the possibility of buying stakes in each other.

“Ford is a wildly independent company,” said Farley.

Write to Stephen Wilmot at [email protected]

2025-12-09T06:05:38Z