Ford and Renault team up for cheap electric cars: what is known
10 December 18:56
Ford Motor Co. and Renault have announced a strategic partnership in Europe aimed at creating cheaper electric vehicles in response to the aggressive expansion of Chinese manufacturers on the continent. This was reported by Bloomberg, according to "Komersant Ukrainian".
What exactly will change in production
Renault will develop and manufacture two new models of electric cars under the Ford brand. The first of them, according to preliminary plans, will appear in European car dealerships in early 2028. Production will take place in France.
Renault CEO Francois Provost emphasized that current market conditions actually force automakers to cooperate:
“There is no choice but to share resources.”
The parties are also exploring the possibility of joint production of vans.
Why now?
The European electric vehicle market is experiencing competition from Chinese players such as BYD, which offer cheaper models and use faster and less costly technological processes.
Ford CEO Jim Farley said that the company can no longer afford to produce a full line of models as in the past and will focus on segments where it has a competitive advantage.
According to him, European automakers are facing a growing flood of subsidized Chinese electric cars that are “structurally designed to undermine European labor and production.”
Pressure on the European auto industry
- Renault is developing an affordable electric Twingo (less than 20 thousand euros), which is expected to be launched next summer.
- Ford continues to downsize in Europe: hundreds of employees are being laid off in Cologne, and the Saarlouis plant has already been shut down.
- Other manufacturers, such as Stellantis and Volkswagen, are also moving to low-cost electric vehicles in an effort to correct the misguided investments in expensive models of previous years.
Ford and Renault’s partnership could be one of the most significant shifts in the European auto industry in recent years – and determine whether Europe can maintain market share in the race with China.
