Ford and Renault have signed a historic agreement and will launch two small electric cars, with the first set to go on sale in early 2028, announced Ford CEO, Jim Farley.
Additionally, the two companies will explore the possibility of producing utility vehicles together, as reported by The Guardian.
Ford's CEO stated that Western car manufacturers are battling against Chinese competition. "We know we are fighting to survive in this industry," Jim Farley told journalists in Paris.
The rapid rise of Chinese electric car manufacturers has put enormous pressure on European and American rivals, who have been slower in developing battery-powered vehicles.
Companies like BYD and Chery have gained market share by producing well-received electric cars at much lower costs than Western manufacturers.
The cheap production of small electric vehicles has been particularly challenging for European car manufacturers, who tended to focus their efforts on larger cars with space for a larger battery.
Cars Will Be Produced in France
The two cars announced by Ford and Renault will be based on Renault's Ampere electric car plan, but will be designed by Ford and carry the American brand.
Renault had previously planned to sell shares of its Ampere unit as a separate company dedicated to electric car technology, but abandoned this plan last year as investor interest waned.
The companies have stated that Renault's factory in Douai, northern France, will produce the vehicles. The factory currently produces the Renault 5, an electric car praised for its design and relatively low cost.
Ford has faced challenges in Europe in recent years. Farley announced last year a reduction of 4,000 jobs, including 800 in the UK, and scaled back planned production of new electric models Explorer and Capri, citing "weak economic conditions and lower-than-expected demand for electric cars."
Farley also criticized this week European targets for electric car sales, writing in the Financial Times that auto manufacturers on the continent are facing "the world's most aggressive carbon emissions mandates," while dealing with "a flood of state-subsidized electric vehicle imports from China."
Renault's CEO, François Provost, stated: "In the long term, combining our strengths with those of Ford will make us more innovative and responsive in a rapidly changing European auto market."