Strategic Realignment
Ford-Renault Alliance: Ampere Platform to Power New European EVs
The landmark manufacturing alliance between Ford and Renault Group not only anchors Ford’s passenger car revival in Europe but also provides a major boost to Renault’s Ampere electric vehicle strategy by allowing the French OEM to fully utilise its EV production capacity and plants in Northern France.
Ford has set a new course for its European operations by entering a deep industrial collaboration with Renault Group. The strategic deal centres on Ford developing new electric passenger vehicles based on Renault’s dedicated Ampere platform and tapping into its state-of-the-art manufacturing facilities. This manufacturing agreement allows Renault to maximise its EV production capacity and advance its core Ampere strategy. Furthermore, the partners have signed a Letter of Intent to explore the joint development and manufacture of selected light commercial vehicles (LCVs) for both brands, with the primary aim of achieving competitive industrial scale and cost efficiency in a capital-intensive region.
The carmaker's latest strategic shift, announced in Cologne, sketches an industrial and political wager. The aim is to fashion a leaner, more agile European operation capable of turning a profit while consumers inch hesitantly toward electrification. For Ford, which has in recent years restructured factories, trimmed portfolios and navigated volatile EV demand, Europe remains both an opportunity and a warning as it tests the technological mettle of global carmakers.
“As an American company, we see Europe as the frontline in the global transformation of our industry,” said Jim Farley, president and CEO of Ford Motor Company. “How we compete here - how we innovate, partner, and invest - will write the playbook for the next generation. We are committed to a vibrant future in Europe, but that future requires us to move with greater speed and efficiency than ever before.”
The new plan reasserts three organising principles. First, to strengthen Ford Pro’s commercial dominance. Second, to rebuild passenger car desirability with distinctive, multi-energy products arriving from 2028. And third, to recalibrate Ford’s manufacturing base to secure scale, cost efficiency and flexibility in a region where margins remain elusive.
Ford’s evolving agenda for Europe
Ford’s next phase centres on a product offensive timed for the late 2020s. A new family of multi-energy passenger and commercial vehicles, positioned as affordable rather than aspirational, is intended to offer customers gradual electrification rather than ideological purity. These additions will join the existing portfolio in 2028 and are pitched as a counterweight to both low-cost Asian challengers and European rivals accelerating their EV ramp.
The company describes this portfolio as a pathway to “sustainably profitable” operations, a phrase that signals Ford’s intent to avoid the margin erosion currently afflicting parts of the EV market. Europe’s regulatory direction of travel may be clear, but demand patterns are not. Electric vehicles account for 16.1 per cent of new sales across the region, well below the level required to satisfy upcoming CO2 thresholds.
Detailing the Strategic Partnership
The collaboration with Renault Group involves the co-development of two Ford-badged electric passenger vehicles on Renault’s Ampere platform, due in 2028. Critically, Ford will lead styling and driving dynamics to maintain its distinct identity and brand assertion, even while leveraging Renault's core technology and production assets.
Ford frames the collaboration as a necessary but controlled step in an increasingly capital-hungry industry. “Our plan is about unleashing the Blue Oval,” said Jim Baumbick, president, Ford Europe. “We are leveraging strategic partnerships to ensure competitiveness, but we are obsessing over the product. These will be fun-to-drive, fully connected vehicles that stand out from the crowd.”
This arrangement is strategically significant for both parties. For Ford, it represents an expansion of its model to offer new electric vehicles at lower capital investment, following a similar agreement that utilises Volkswagen’s MEB platform. For Renault, the deal is an important alliance separate from Nissan, whose traditional partnership has recently faced challenges. The new collaboration with Ford, alongside a separate partnership with Geely, underscores Renault’s shift toward building a robust, new network of strategic global alliances.
Collectively, the effort follows a well-established pattern. Ford’s alliances with Koç Holding and Volkswagen underpin its commercial vehicle leadership, and the new tie-up with Renault extends this logic into the passenger car domain.
Commercial strength and data-driven services
Ford Pro remains the dependable engine of Ford’s European performance. Beyond hardware, the division now sells uptime. Its Liive Uptime system, which turns billions of data points into predictive maintenance insights, added an estimated 820,000 days of vehicle availability for European businesses in 2024 alone. Such services are increasingly central to Ford’s argument that digital ecosystems, not drivetrains, will differentiate commercial vehicle brands.
It is about making the transition more attractive and more affordable for all consumers and businesses, stimulating demand rather than stifling it
Recasting the industrial footprint for multi-energy flexibility
The restructuring of Ford’s industrial base is unfolding through a mixture of modernisation and inter-company synergy. Ford Otosan, the joint venture with Koç Holding, is widely cited as one of the sector’s most effective collaborations. Its plants are supplied with electric drive units from Halewood in the UK, following a £380 million investment in the facility, equivalent to roughly $480 million today. Advanced engines continue to flow from Ford’s Dagenham plant, maintaining its strategic relevance. Volkswagen also remains a pivotal partner, with Ford’s EVs from their alliance produced at the Electric Vehicle Centre in Cologne. Meanwhile Ford’s Valencia plant is being positioned as a backbone for the next phase of passenger car development, supporting the shift toward multi-energy architectures. Collectively, these arrangements represent Ford’s attempt to offset Europe’s structurally high costs while preserving control over product character.
Ford presses Europe for regulatory realism
As Ford refreshes its industrial and product agenda, it is also making a political one. The company argues that Europe’s regulatory trajectory risks outpacing consumer readiness. The disparity between mandated CO2 reductions and actual EV uptake has sharpened tensions between policymakers and manufacturers.
“We need to enable everyone to benefit from electrification and letting customers choose – whether that's fully electric or hybrid vehicles,” said Jim Baumbick. “It is about making the transition more attractive and more affordable for all consumers and businesses, stimulating demand rather than stifling it.”
Ford proposes three adjustments. The first is regulatory alignment with market reality, including a longer runway for hybrid sales. The second is sustained incentives and nationwide charging investment, bridging the divide between affluent cities and rural regions. The third is relief for commercial fleets, where only 8 per cent of new vans are electric. Ford warns that current CO2 rules amount to an “economic tax” on small enterprises that constitute more than half of the continent’s GDP. The argument ultimately reflects Ford’s broader strategy. A successful transition, the company contends, depends on giving customers time, choice and affordability rather than forcing technological adoption ahead of demand.
