Ford is turning to Renault for new electric vehicles (EVs) as its European passenger car sales continue to decline sharply. The move, confirmed by Ford CEO Jim Farley, aims to inject fresh models into a shrinking lineup while the company struggles to compete with established rivals and rapidly growing Chinese automakers.
Ford’s Shrinking Footprint in Europe
Ford’s share of the European new passenger car market has fallen to just 2.8% in the first two months of 2024, a 20.3% drop year-over-year to 55,025 units. This decline comes after the discontinuation of key models like the Focus, Ka, Fiesta, and Mondeo, leaving Ford reliant on crossovers (Puma and Kuga) and niche offerings like the Mustang.
This isn’t just a temporary dip: the loss of the Focus – once a hugely popular compact – represents a significant blow to Ford’s presence in the crucial small-to-midsize segment. While new EVs like the Explorer and Capri haven’t reversed the trend, Ford is now pinning hopes on Renault-based EVs scheduled for release in early 2028.
The Renault Partnership: A Necessary Stopgap?
The two upcoming EVs will be built on Renault’s Ampere platform, the same architecture underpinning models like the Twingo, 4 E-Tech Electric, and 5 E-Tech Electric. Despite relying on a competitor’s technology, Farley insists the cars will retain a “swagger” unique to Ford of Europe. This strategy highlights Ford’s desperate need for new products to counter its losses.
The move isn’t without risk. The gap in Ford’s lineup will extend for two years while the Renault-based models are developed, giving rivals ample time to further cement their positions.
The Rise of Chinese Competition
Ford isn’t just losing ground to European giants like Volkswagen, Stellantis, and Hyundai. Chinese automakers are gaining traction at an alarming rate. BYD secured a 1.9% market share with 36,069 registrations in the first two months, while SAIC reached 2.1% with 41,454 units.
Chinese manufacturers are flooding the European market with new models, and at their current pace, they could overtake Ford before the end of the year. The absence of the Focus makes Ford particularly vulnerable to this challenge.
What Does This Mean?
Ford’s reliance on Renault EVs is a sign of weakness in a rapidly changing market. Whether these vehicles can revive the company’s fortunes remains to be seen. The commercial sector remains a bright spot for Ford, but in the passenger segment, survival depends on how quickly and effectively it can adapt to an increasingly competitive landscape.
The strategy is a gamble, but Ford has little choice: without aggressive product development, its presence in Europe will continue to shrink.
