On December 9, Renault Group and Ford Motor officially announced a strategic partnership to jointly develop two affordable Ford-branded electric vehicles (EVs) for the European market. The collaboration also includes exploring joint development and production of light commercial vehicles, aiming to reduce costs amid intensifying competition.
**Cost-Driven Strategic Alliance** The partnership centers on electrification and product strategy in Europe. For passenger vehicles, the two automakers will co-develop two new Ford-branded EVs based on Renault’s Ampere platform, with production set at Renault’s ElectriCity facility in northern France. Ford will lead the design, ensuring the models retain its brand identity while leveraging Renault’s manufacturing expertise to lower costs.
The EVs, positioned as compact and affordable, are expected to launch in early 2028, helping Ford address gaps in its European EV lineup while maximizing Renault’s platform capacity. Additionally, the companies signed a letter of intent to explore joint development of select light commercial vehicles under both brands.
**Complementary Strengths** Historically, Renault’s key partner has been Nissan, with whom it formed an alliance in 1999, while Ford’s European strategy relied on Volkswagen’s MEB platform for models like the Capri and Explorer. However, Ford lacked a competitive small EV offering for mass-market European consumers—a gap Renault, a leader in compact EVs, is well-positioned to fill.
For Renault, the deal provides stable orders to offset high EV development costs and bolsters its European presence through Ford’s global brand influence. The success of Renault’s partnership with Geely—which expanded from South Korea to South America—has reinforced its collaborative approach.
**Challenges Driving Collaboration** Both automakers face mounting pressures. Renault reported a net loss of €11.14 billion in H1 2025, partly due to a €9.3 billion writedown on Nissan shares. Excluding this, net profit still plunged to €461 million, down two-thirds year-on-year. CEO François Provost’s “Arrow” cost-cutting plan includes slashing 15% of support staff, making external partnerships vital.
Ford’s European market share has dwindled from over 10% in the 1990s to 3.3% in 2025 (Jan-Oct). Its €2 billion investment in Cologne’s EV plant underperformed, forcing production cuts and 1,000 layoffs by early 2026. With Chinese competition and U.S. tariffs squeezing profits, the Renault deal offers Ford a cost-effective path to regain competitiveness.
This “strength-in-numbers” strategy exemplifies how traditional automakers can navigate transition challenges through collaboration.
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