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Ford finds a new partner for affordable EVs amid a ‘fight for our lives’

Ford is promising that more affordable EVs are coming soon. A new partnership will include two Ford-branded electric vehicles, but that’s just the start.

Ford and Renault partner up on affordable EVs

“We know we’re in a fight for our lives,” Ford’s CEO Jim Farley warned on Monday (via CNN) before announcing a landmark partnership with Renault to develop more affordable EVs and fend off surging Chinese brands like BYD and SAIC’s MG.

Ford said the new partnership is “a first step,” as part of a broader restructuring in the region. The plans include two new Ford-branded EVs, based on Renault’s Ampere platform.

Although they will share underpinnings with the popular Renault 5, the American automaker will lead the design to “ensure these vehicles are distinctly Ford.”

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The first is expected to be an electric successor to the widely popular Fiesta, while the second is rumoured to be a small EV crossover, similar to the Renault 4.

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The electric Ford Puma Gen-E (Source: Ford)

Ford didn’t offer specifics, but said the first vehicles will begin arriving in showrooms in 2028. Farley told reporters that the new EVs will be smaller than anything planned for the US, as it seeks to fill a critical gap in its European lineup.

“As an American company, we see Europe as the frontline in the global transformation of our industry,” Farley said, adding that “how we compete here will write the playbook for the next generation.”

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Ford’s electric vehicles in Europe from left to right: Puma Gen-E, Explorer, Capri, and Mustang Mach-E (Source: Ford)

The partnership will also include jointly developing Ford and Renault-branded commercial vehicles using common platforms.

Ford’s current EV lineup in Europe consists of the Electric Explorer and Capri, which share a platform with the Volkswagen ID.4 and ID.5, and the Puma Gen E.

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Ford Explorer EV production in Cologne (Source: Ford)

The news comes just a day after Farley warned that the EU’s emissions rules are “risking the future” of the auto industry.

Electrek’s Take

Ford initially backed the EU’s push to have all-electric vehicle sales in the region by 2035, but now it’s blaming slower-than-expected EV demand and calling for looser rules.

Farley has warned several times now that Chinese automakers, like BYD, are an “existential threat” to the auto industry. As part of its restructuring, Ford has already announced plans to cut thousands of jobs in Europe while reducing output at its Cologne EV facility.

Ford’s share of European passenger car sales has plummeted from 6.1% in 2019 to just 3.3% through October of this year.

Although the company is blaming slower EV demand, electric vehicles are still gaining ground in Europe. Through October 2025, nearly 1.5 million EVs were registered in Europe, accounting for 16.4% of the market. That’s up from around 13.2% through the first 10 months of 2024.

Meanwhile, the combined share of petrol and diesel cars fell to 36.6% from 46.3% over the same period.

Are EV sales slowing? Or, is it a Ford problem? The new alliance with Renault to build more affordable EVs will be critical to Ford’s comeback in the region.

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Avatar for Peter Johnson Peter Johnson

Peter Johnson is covering the auto industry’s step-by-step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising