Ford and Renault team up in Europe to compete against low-price Chinese cars

Subscribe to enjoy similar stories. 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.