Two major brands have reached an agreement! They will produce small and affordable cars.

09.12.2025 13:25

Ford has collaborated with Renault to develop small and affordable electric vehicles in order to increase competition with Chinese electric car manufacturers. The first model will be produced in 2028 at Renault's facility in France. As Ford has struggled against the pressure from Chinese brands, its market share in Europe has declined in recent years, and the company aims to strengthen its position with this move.

American automotive giant Ford has taken a new strategic step in response to the pressure from rapidly growing Chinese brands in the electric vehicle market. The company has partnered with Renault to produce affordable and compact electric cars aimed at Europe. The first of two small electric models to be developed under the agreement will be produced at Renault's factory in northern France and is set to hit the market in 2028.

"WE ARE FIGHTING FOR OUR LIVES IN THE INDUSTRY"

Speaking to reporters in Paris ahead of the joint announcement, Ford CEO Jim Farley stated that Chinese manufacturers are challenging the global market with low-cost electric vehicles, saying, "We are literally fighting for our lives in the industry. There is no clearer example of this than the situation in Europe."

COMPETITION WITH CHINESE BRANDS IS BECOMING INCREASINGLY DIFFICULT

European car manufacturers are increasingly struggling to compete with brands like Chinese BYD, Changan, and Xpeng. Although Chinese companies' sales of light commercial vehicles in Europe are still at low levels, Farley noted that this competition has already become evident in emerging markets. Renault CEO Francois Provost emphasized the urgency of the collaboration, stating, "The Chinese will soon enter Europe more forcefully. We do not have the luxury of waiting."

Ford's market share in the European passenger car market has seen a sharp decline in recent years. The company's market share fell from 6.1% in 2019 to 3.3% in the first ten months of this year. Ford also reduced its operations in Europe by closing its Saarlouis facility in Germany.