Ford and Renault Join Forces on European Electric Vehicle Development
In a strategic move to bolster their presence in the electric vehicle (EV) market, Ford Motor Co. and Renault SA have announced a collaboration to create two passenger electric vehicles for the European market. This partnership comes as the automakers also explore opportunities for joint development in the light commercial vehicle sector.
The announcement follows a delay by the European Commission on advancing an automotive package that could potentially relax the 2035 ban on new carbon dioxide-emitting vehicles. Ford, alongside other traditional automakers, has voiced concerns over the feasibility of such regulations, advocating instead for policies that align with consumer needs and extend the viability of hybrid vehicles.
“As an American company, we see Europe as the frontline in the global transformation of our industry,” remarked Jim Farley, president and CEO of Ford. “How we compete here — how we innovate, partner, and invest — will write the playbook for the next generation.”
The collaboration with Renault highlights the challenges faced in the EV sector, such as consumer reluctance due to range anxiety and insufficient charging infrastructure. By utilizing Renault’s Ampere smart EV platform, set to debut with two Ford-branded models in early 2028, the companies aim to achieve the scalability necessary for profitability. Ford has yet to announce pricing details for these models.
Electric vehicles currently account for 16% of new car sales in Europe, falling short of the 25% target needed to meet CO2 reduction goals by 2025. Ford has called for a “realistic and reliable 10-year planning horizon,” advocating for a more gradual transition to fully electric vehicles.
Jim Baumbick, president of Ford Europe, emphasized the importance of consumer choice in the transition to electrification, stating, “We need to enable everyone to benefit from electrification and letting customers choose — whether that’s fully electric or hybrid vehicles.”
Amidst environmental concerns and competition from Chinese manufacturers producing cost-effective EVs, Ford and Renault aim to strengthen their market positions. The vehicles from this partnership will be produced at Renault’s Ampere ElectriCity plant in northern France, with plans for further development in Ford’s Valencia plant in Spain (source).
Renault CEO François Provost commented, “This partnership shows the strength of our partnership know-how and competitiveness in Europe. Combining our strengths with Ford will make us more innovative and more responsive in a fast-changing European automotive market.”
In addition to passenger vehicles, Ford and Renault have signed a letter of intent to collaborate on light commercial vehicles, exploring joint manufacturing and development under both brands. Ford has criticized aggressive CO2 regulations on commercial vehicles, describing them as an economic burden on small- and medium-sized businesses.
In an effort to optimize its business operations, Ford announced a reduction of 4,000 jobs in Europe by the end of 2027, primarily affecting its workforce in Germany and the UK. The company aims to focus on its Ford Pro commercial business, which is a significant revenue generator, while addressing underperforming EV sales.
Ford’s European partnerships extend beyond Renault, including ventures with Koç Holding in Turkey and collaborations with Volkswagen AG on commercial and passenger vehicles, manufactured at Ford’s Cologne Electric Vehicle Center.
Original Story at www.detroitnews.com