Ford Motor Co. entered into a "strategic partnership" with French-automaker Renault Group to expand Ford’s electric vehicle offering in Europe, a deal that will "significantly" improve the competitiveness for both companies in Europe, the companies said Dec. 9 in a statement.
The collaboration, which is not a joint-venture, will involve the automakers developing two distinct Ford-branded EVs, Ford's statement said.
Additionally, the two auto companies have signed a Letter of Intent for a European light commercial vehicle collaboration. Under this letter, the companies "will explore the opportunity to jointly develop and manufacture" certain Ford and Renault light commercial vehicles, Ford said in a statement.
The two new EVs will be based on the Ampere platform — that's Renault's EV arm dedicated to designing advanced and affordable EVs. For Ford, the partnership means leveraging Renault's EV assets and competitiveness. The vehicles will be made by Renault Group in the north of France using Ampere’s ElectriCity’s “state-of-the-art” manufacturing expertise.
For Renault, the two vehicles, which are expected to come to market in early 2028, will be designed by Ford. The EVs will feature "distinctive driving dynamics, authentic Ford-brand DNA and intuitive experiences" and mark the first step in a new product offensive for Ford in Europe.
“As an American company, we see Europe as the frontline in the global transformation of our industry,” Ford CEO Jim Farley said in a statement. “How we compete here, how we innovate, partner, and invest — will write the playbook for the next generation. We are committed to a vibrant future in Europe, but that future requires us to move with greater speed and efficiency than ever before.”
Ford and Renault take on the Chinese
Farley added that the partnership is an important step for Ford and supports "our strategy to build a highly efficient and fit-for-the future business in Europe. We will combine Renault Group’s industrial scale and EV assets with Ford’s iconic design and driving dynamics to create vehicles that are fun, capable and distinctly Ford in spirit."
Farley has been vocal about the importance of being competitive in EVs against Chinese manufacturers, which are known for making high-quality and affordable EVs, and have a growing footprint in Europe with major Chinese brands such as BYD and Geely gaining marketshare.
According to Schmidt Automotive Research, the marketshare for Chinese EVs in Western Europe is expected to increase to 11% this year or 269,450 vehicles, up from 9.6% in 2024. Western Europe includes Germany, France, Britain, Italy and Spain. That's a gigantic gain in marketshare given that in 2021 the Chinese EV companies had just 3.8% marketshare. But the research forecasts that Chinese EV marketshare will peak at 13% in 2028 then slide back to 11.7% in 2030 or 756,000 vehicles.
Currently, EVs represent a total of 16.1% of vehicles sold in Europe, Ford said, far below the required 25% of new vehicle registrations required to meet Europe’s strict CO2 targets by 2025.
“We need to enable everyone to benefit from electrification and letting customers choose — whether that’s fully electric or hybrid vehicles,” Ford Europe President Jim Baumbick said in a statement. “It is about making the transition more attractive and more affordable for all consumers and businesses, stimulating demand rather than stifling it.”
Ford and Renault leaders say that by joining forces in innovation, design, software and service delivery, will help them to address industry challenges and better serve retail and commercial customers.
“Our plan is about unleashing the Blue Oval,” Baumbick said. “We are leveraging strategic partnerships to ensure competitiveness, but we are obsessing over the product. These will be fun-to-drive, fully connected vehicles that stand out from the crowd.”
The gains from the partnership
When asked how much cost-savings and efficiency Ford hopes to gain from this partnership or how much revenue it forecasts coming from sales of these new EVs once they come to market, Ford Europe spokesman Dirk Ellenbeck told the Detroit Free Press, part of the USA TODAY Network: "The partnership combines the expertise, industrial scale and supply base of Ford and the Renault Group and will improve the competitiveness of both parties. We are not disclosing financials associated with this partnership."
But the partnership combines the expertise, industrial scale and supply base of two major companies to deliver efficiency and manufacturing scale.
François Provost, CEO Renault Group, said the collaboration reflects the strength of both companies' expertise and competitiveness in Europe.
"In the long term, combining our strengths with Ford will make us more innovative and more responsive in a fast-changing European automotive market," Provost said in a statement.
Ford's other partners
Ford has existing partnerships in Europe. Ford Otosan is its joint venture with Koç Holding, a Turkish investment company. That arrangement has helped support Ford's commercial vehicle business in Europe. Ford Otosan plants are supplied with electric drive units produced in the United Kingdom following a £380 million investment in the plant, and advanced engine technology from Ford’s Dagenham plant in England.
In 2020, Ford and Volkswagen AG agreed to develop commercial vehicles and a variety of passenger cars globally. Ford said the partnership is delivering "significant contributions to strengthening both our commercial vehicle and passenger car businesses. Ford’s current range of electric vehicles from the alliance are produced at its new Electric Vehicle Centre in Cologne, Germany."
At the same time, Ford is evolving its industrial operations in Europe to help it offer customers more choices for "multienergy vehicles." Ford’s plant in Valencia, Spain, will continue to play a critical role in realizing Ford’s plan for an enhanced passenger vehicle portfolio in Europe, the company said.
Jamie L. LaReau is the senior autos writer for USA Today Co. who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
This article originally appeared on Detroit Free Press: Ford partners with Renault to build more EVs for Europe
Reporting by Jamie L. LaReau, Detroit Free Press / Detroit Free Press
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