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- Ford Motor Company and Renault Group have entered into a strategic partnership to expand Ford’s electric vehicle offering in Europe.
- The partnership will produce two new Ford-branded EVs built on Renault’s Ampere platform, expected to be launched in early 2028.
- The automakers also signed a letter of intent to explore joint development and manufacturing of light commercial vehicles.
Ford Motor Co. has entered into a “strategic alliance” with French automaker Renault Group to expand sales of Ford’s electric vehicles in Europe. The deal will “significantly” improve the competitiveness of both companies in Europe, the companies announced in a statement on December 9.
A statement from Ford said the partnership is not a joint venture and will see the automakers develop two different EVs under the Ford brand.
Additionally, both car companies have signed a letter of intent regarding a European light commercial vehicle partnership. Ford said in a statement that based on the letter, the two companies will “explore opportunities to jointly develop and manufacture” certain Ford and Renault light commercial vehicles.
The two new EVs are based on the Ampere platform, Renault’s EV division, which specializes in designing advanced and affordable EVs. For Ford, the partnership means leveraging Renault’s EV assets and competitiveness. The vehicles will be manufactured by Groupe Renault in northern France, using Ampere Electricity’s “state-of-the-art” manufacturing expertise.
For Renault, the two vehicles scheduled to go on the market in early 2028 will be designed by Ford. The EV features “unique driving dynamics, authentic Ford brand DNA and an intuitive experience” and is the first step in Ford’s new product offensive in Europe.
“As an American company, we believe Europe is at the forefront of the global transformation of our industry,” Ford CEO Jim Farley said in a statement. “How we compete, innovate, partner and invest here will shape the next generation of strategies. We are committed to a vibrant future for Europe, and that future requires us to move faster and more efficiently than ever before.”
Ford and Renault face off against Chinese rivals
Farley added that the partnership is an important step for Ford and “supports our strategy to build a highly efficient, future-proof business in Europe. We combine Group Renault’s industrial scale and EV assets with Ford’s iconic design and driving dynamics to create vehicles that are fun, capable and clearly in the spirit of Ford.”
Farley is known for producing high-quality, affordable EVs and has been vocal about the importance of being competitive in EVs against Chinese manufacturers, where big Chinese brands like BYD and Geely are gaining market share and expanding their footprint in Europe.
China’s EV market share in Western Europe is expected to increase from 9.6% in 2024 to 11%, or 269,450 units, this year, according to Schmidt Automotive Research. Western Europe includes Germany, France, Great Britain, Italy, and Spain. This is a significant increase in market share considering that in 2021, the market share of Chinese EV companies was only 3.8%. However, the study predicts that China’s EV market share will peak at 13% in 2028 and return to 11.7%, or 756,000 units, in 2030.
According to Ford, EVs now account for a total of 16.1% of cars sold in Europe, far below the 25% of new vehicle registrations needed to meet Europe’s stringent CO2 targets by 2025.
“We need to make sure everyone can benefit from electrification and give customers the choice between an all-electric vehicle or a hybrid vehicle,” Ford Europe President Jim Baumbick said in a statement. “It’s about making the transition more attractive and more affordable for all consumers and businesses, and stimulating rather than suppressing demand.”
Ford and Renault leaders say that by joining forces in innovation, design, software and service delivery, they will be able to address industry challenges and better serve retail and commercial customers.
“Our plan is to unleash the Blue Oval,” Baumbick said. “While we leverage strategic partnerships to ensure a competitive edge, we are obsessed with our products. These will be fun-to-drive, fully connected vehicles that stand out from the crowd.”
Benefits of partnership
When asked how much cost savings and efficiencies Ford hopes to gain from this partnership, or how much revenue it expects to make once these new EVs hit the market, Ford Europe spokesperson Dirk Ellenbeck told USA “This partnership combines the expertise, industrial scale and supply base of Ford and Renault Group, and will improve the competitiveness of both companies,” he told the Detroit Free Press, part of the TODAY network. “We are not disclosing financial information related to this partnership.”
However, this partnership combines the expertise, industrial scale and supply base of two leading companies to deliver efficiencies and manufacturing scale.
François Provot, CEO of the Renault Group, said the partnership reflects the expertise of both companies and their competitive strength in Europe.
“Over the long term, the combined strengths of Ford and our company will make us more innovative and more responsive in Europe’s rapidly changing auto market,” Provost said in a statement.
Ford’s other partners
Ford has existing partnerships in Europe. Ford Otosan is a joint venture with Turkish investment company Koç Holding. The arrangement helps support Ford’s commercial vehicle operations in Europe. The Ford Otosan factory is supplied with electric drive units produced in the UK following a £380 million investment in the factory and advanced engine technology from Ford’s Dagenham factory in the UK.
In 2020, Ford and Volkswagen AG agreed to develop commercial vehicles and a variety of passenger vehicles globally. Ford said the partnership “makes a significant contribution to strengthening both our commercial vehicle and passenger vehicle businesses. Ford’s current range of electric vehicles from the partnership are produced at our new electric vehicle center in Cologne, Germany.”
At the same time, Ford is evolving its industrial operations in Europe to offer customers more choices in “multi-energy vehicles.” Ford’s plant in Valencia, Spain, will continue to play a key role in realizing Ford’s plans to strengthen its passenger vehicle portfolio in Europe, the company said.
Jamie L. Lareau is senior auto writer for USA Today and covers Ford Motor Company for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @Jalarowan. To sign up for our automotive newsletter. become a subscriber.
