Europe’s auto market: Renault & Ford join hands to counter Chinese automakers; ‘in a fight for our lives’
Renault and Ford have announced a new partnership aimed at jointly developing small, low-cost electric vehicles and commercial vans for the European market, in an effort to reduce production costs and defend their market share against fast-growing Chinese automakers. Speaking to reporters in Paris on Monday ahead of the announcement, Ford CEO Jim Farley underlined the urgency facing legacy manufacturers. “We know we’re in a fight for our lives in our industry,” he said, referring to the mounting pressure from more affordable Chinese electric models. “There is no better example than here in Europe,” Reuters cited. Europe’s established carmakers are facing an influx of competition, with brands such as BYD, Changan and Xpeng expanding rapidly across the region. Under the partnership, the first of two planned compact electric vehicles, designed by Ford and built at a Renault factory in northern France, is scheduled to arrive in European showrooms in 2028. These models will be smaller than any EVs Ford plans to sell in the United States and are expected to fill a major gap in the brand’s European lineup. The agreement also extends to commercial vehicles, with both companies set to co-develop Renault- and Ford-branded vans for Europe. Farley described the collaboration as a strategic way to strengthen their position in the light commercial vehicle segment. “Together we can create a powerhouse of LCV in Europe that would be very difficult for the Chinese to compete with,” he said. Although few Chinese van brands have reached Europe so far, Farley argued that the threat is already present. “We compete with them directly every day” in emerging markets, he said. Renault CEO Francois Provost echoed the concern, warning that competition will intensify. “The Chinese will come soon and that’s why I don’t want to wait,” he said. The partnership emerged after a Renault team visited Ford’s headquarters in Detroit in March, and both Farley and Provost stressed that the arrangement does not signal a merger, Reuters reported. Ford has been losing ground in Europe, with its passenger car market share dropping from 6.1% in 2019 to 3.3% in the first 10 months of this year, following a pullback from passenger vehicle sales. As part of recent restructuring efforts, the company has cut jobs and shut down its Saarlouis plant in Germany earlier this year. The automaker also faces high investment pressures at home, as the withdrawal of EV incentives under U.S. President Donald Trump forces Ford to continue investing in both combustion-engine models and expensive new electric vehicle technology. Leveraging Renault’s EV platforms, paired with Ford’s own designs, is expected to ease the financial strain and improve competitiveness in Europe. Ford already builds two EV models in Europe on a Volkswagen platform and produces vans with the German manufacturer. Farley noted that the new collaboration with Renault will operate alongside its current partnership with Volkswagen. Renault also has joint van programmes with Nissan and Volvo Group. For Renault, the tie-up strengthens manufacturing scale at a critical moment. As Europe’s smallest mainstream automaker and without a presence in China or the United States, the company has been actively seeking partnerships to make better use of its factories and reduce the cost burden of developing new electric models. The French manufacturer is set to produce two vehicles in Brazil in 2026 using platforms from China’s Geely and is in discussions with additional carmakers, including China’s Chery, to jointly produce and sell vehicles. Provost said Renault remains determined to prove that Europe can stay competitive in electric vehicle manufacturing. “Our ambition… is to show that in Europe we can produce EV cars in Europe as competitively as anyone, including the Chinese,” he said.
