Ford, Renault Join Forces on Affordable EVs in Europe to Counter China

'We know we’re in a fight for our lives in our industry,' Ford CEO Jim Farley told reporters.

Published: 12/9/2025, 5:33:17 PM EST

Ford, Renault Join Forces on Affordable EVs in Europe to Counter China — A Ford logo is seen on the Ford Motor World headquarters in Dearborn, Mich., in a file photo. (Rebecca Cook/Reuters)

Ford is partnering with Renault to develop smaller, more affordable electric vehicles (EVs) for the European market, aiming to counter rising competition from Chinese rivals.

The automakers signed a partnership agreement to jointly produce two Ford-branded passenger electric cars using Renault’s Ampere platform—the company’s dedicated EV infrastructure.

Renault’s plant in northern France will be the home for these new EVs. The companies plan to have the two models appear in European dealerships in 2028.

The collaboration will also pursue opportunities to work together in the European market’s commercial-vehicle segment. This initiative would involve jointly developing and manufacturing various light commercial vehicles under Ford and Renault branding.

“As an American company, we see Europe as the frontline in the global transformation of our industry,” Jim Farley, president and CEO of Ford, said in a statement.

Renault is one of Europe’s largest carmakers, alongside BMW, Mercedes-Benz, Stellantis, and Volkswagen Group.

“This partnership shows the strength of our partnership know-how and competitiveness in Europe,” François Provost, CEO of Renault Group, said in a news release. “In the long term, combining our strengths with Ford will make us more innovative and more responsive in a fast-changing European automotive market.”

Ford’s newest initiative aims to build on its momentum overseas, as it ranked among the top 25 best-selling European EV brands this past summer, according to data from JATO.

Still, Ford’s market share remains below 4 percent.

But the strategy is also a part of the number-two U.S. automaker’s broader effort to fend off growing competition from lower-cost Chinese automakers.

Driving Chinese Cars in Europe

In recent years, Europe has witnessed an increasing presence of Chinese car companies, including BYD, Changan, MG, and Xpeng.

China’s automakers account for approximately 6 percent of Europe’s auto market, even as the European Union imposed sizable tariffs on Chinese EVs last year. In October 2024, the 28-nation bloc raised tariffs on Chinese-built EVs to as high as 45.3 percent.

With renewed demand for EVs in Europe—sales of electric cars surged more than 26 percent in the first 10 months of the year—Western automakers are rushing to produce cheaper alternatives to counteract their Chinese competitors.

“We know we’re in a fight for our lives in our industry,” Farley told reporters in Paris on Dec. 8. “There is no better example than here in Europe.”

“The Chinese will come soon, and that’s why I don’t want to wait,” Provost said.

Earlier this month, the European Commission opened its first formal review of Chinese EV tariffs following a submission from Volkswagen’s joint venture in China, VW Anhui. The review will assess whether existing tariffs can be replaced with a minimum price undertaking, a mechanism that could reduce the cost of China-built EVs entering the European market.

Attendees look at a BYD Dolphin during the 2022 Central China International Auto Show in Wuhan, Hubei province. (Getty Images)

Market watchers say China’s BYD has successfully navigated the complex global marketplace this year, with January–October sales surging almost 5 percent year over year, to 3.322 million units.

“BYD has been flexibly responding to recent changes in tariffs and subsidy policies by building production sites in the European region (Hungary and Turkey) and the Southeastern Asian region (Thailand, Indonesia, and Cambodia),” strategists at SNE Research said in a Dec. 3 report.

“While steadily increasing its brand awareness based on price competitiveness and technology, BYD has been working to diversify its model line-ups from commercial vehicles to small vehicles to improve its competitiveness across the entire ecosystem for electric vehicles.”

Ford, on the other hand, has the challenge of investing in combustion-engine models as well as costly new EV technology.

This year, the current administration has supported measures to roll back federal support for EVs, such as loosening fuel economy standards and eliminating up to $7,500 in federal tax credits.

Meanwhile, the Blue Oval is also joining the chorus of car companies shifting their strategies to adapt to cost-conscious consumers and evolving market dynamics.

“GM, Ford, and Hyundai Motor Group are adjusting their strategies by reshaping their lineups around mid- to low-priced segments and expanding hybrid models,” SNE Research added.

In its latest earnings results, Ford reported better-than-expected profits and revenues but lowered its full-year guidance, citing supply chain disruptions.

Shares of Ford are up 36 percent this year.

Reuters contributed to this report.

From The Epoch Times