Renault and Ford Join Forces to Produce Electric Vehicles in France to Counter Chinese Competition

In a significant move to address the growing presence of Chinese electric vehicles in the European market, Renault and Ford announced a strategic partnership on December 9, 2025. The collaboration focuses on developing and producing two new electric vehicle models in northern France, leveraging Renault's expertise and manufacturing capacity to strengthen Ford's competitive position in Europe.

The partnership emerged amid a notable shift in Europe’s automotive trade balance. By 2025, Europe is projected to experience a negative trade balance with China for new cars for the first time, reversing a €15 billion surplus from 2022 due to a surge in Chinese imports. This increasing competition has pressured traditional automakers like Ford, which has struggled in the European market over the past five years.

Ford CEO Jim Farley attended the signing ceremony in Paris and expressed a firm commitment to surviving the tough market landscape. He praised Renault’s recent resurgence under CEO Luca de Meo, particularly lauding Renault’s effective cost management and efficiency in electric vehicle platforms. Farley highlighted the importance of the partnership in reinvigorating Ford’s presence in Europe and competing with Chinese manufacturers.

The collaboration will center on the development of two small electric vehicles for Ford, which will be based on Renault’s established R5 and R4 platforms. Production will take place at Renault’s plants in northern France, specifically enhancing the Douai and Maubeuge sites that currently produce models such as the R5, Megane, Scenic, Nissan Micra, and R4. The partnership began with talks in March when Renault's CEO François Provost visited Detroit.

This initiative represents a crucial step both for Ford’s turnaround strategy in Europe and for Renault to capitalize on its manufacturing strengths. The first new vehicle from this partnership is expected to reach dealerships by early 2028, signaling a timely response to market challenges and the intensifying competition from Chinese electric vehicle imports.