Facing increased competition from Chinese automakers, Ford and Renault are teaming up instead of going at it alone.
Reuters reported on the automakers' strategic partnership aimed at developing affordable electric vehicles in Europe.
"We know we're in a fight for our lives in our industry," Ford CEO Jim Farley said ahead of the announcement, as relayed by Reuters. "There is no better example than here in Europe."
Chinese manufacturer BYD recently surpassed Tesla as the top EV brand in Europe, and Xpeng is similarly increasing its presence. The Ford-Renault collaboration will include small EV models to be launched in 2028, and production will take place at a Renault facility in northern France.
The vehicles will be smaller than any Ford has planned for the U.S. market. Another plan is to produce Renault and Ford-branded vans for the European market. That move is proactive, as Chinese brands currently don't offer many of those in Europe.
This alliance for the two vehicles is part of Ford's broader strategy to counter growing competition from Chinese auto brands. Historically, Reuters noted Ford's presence in Europe has declined from a 6.1% share of passenger cars in 2019 to 3.3% so far in 2025.
Both brands do get something out of the alliance.
Renault, Europe's smallest major auto brand, gets lower costs through greater manufacturing scale. Ford lowers expenses on European production. It also expands on partnerships it has to create EVs and vans in a separate Volkswagen partnership.
Recent moves by President Trump like lowering emissions standards have impacted U.S. automakers like Ford. Seeing a partnership like this one emerge could allow companies to move forward with more EV options.
Of course, some concerns about battery production and element mining remain. However, the gains from transitioning from fossil fuels and the other benefits of EV adoption outweigh those concerns, per researchers.
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