Can Ford and Renault Crack Europe’s EV Cost Challenge?

Ford and Renault partner to cut EV costs and expand electric production in Europe

15 Dec 2025

Europe’s electric-car race is entering a less glamorous stage. The early excitement around new models and bold targets has given way to a harder problem: how to build electric vehicles cheaply enough to sell them in large numbers. On May , Ford and Renault signalled their answer. They will work together.

The two firms have agreed to jointly develop a new generation of electric passenger cars for Europe, to be built at Renault’s plant in northern France. The first models are due late in the decade, around 2028. The partners will also explore cooperation on electric commercial vehicles, widening the alliance beyond family cars. The schedule is long. The logic is immediate.

Electric vehicles are expensive to design. Batteries, software and dedicated platforms demand heavy investment long before a single car is sold. For firms already strained by tighter emissions rules and slowing demand, duplication makes little sense. By sharing architectures and factories, Ford and Renault hope to cut costs, raise volumes and offer vehicles that appeal to price-sensitive buyers.

The pressure is growing. Cheaper electric models from China and elsewhere are gaining ground in Europe. At the same time, domestic manufacturers face rising capital needs and little room to raise prices. Alliances spread risk and conserve cash. They also buy time.

The emphasis, say those close to the deal, is on practicality rather than prestige. The aim is not to showcase cutting-edge technology, but to deliver reliable electric cars for urban drivers, fleets and small businesses. That focus reflects a broader reality: many European buyers remain wary of electric vehicles, mostly because of their cost.

This partnership fits a wider pattern. Across the industry, the old ideal of independence is fading. Shared platforms, joint ventures and common supply chains are becoming the norm as electrification advances. Details on prices and performance remain scarce, and success is far from guaranteed. Still, Ford and Renault are making a clear bet: that in Europe’s electric future, scale and cooperation will matter more than standing alone.