Ford Motor Co. will develop two passenger electric vehicles for Europe with French rival Renault SA, and the two automakers will explore collaboration on light commercial vehicles.

The companies announced the partnership on Tuesday after the European Commission delayed a meeting scheduled this week to advance an automotive package that could weaken a 2035 ban on new carbon dioxide-emitting vehicles. Ford and other legacy automakers say the regulation is unfeasible, calling for policy in alignment with consumer demand that extends the life of hybrids.

“As an American company, we see Europe as the frontline in the global transformation of our industry,” Jim Farley, president and CEO of Ford, said in a statement. “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 Ford-Renault partnership is a sign of the challenges with EVs. Low volumes as consumers hesitate over range anxiety, access to charging infrastructure and slow charging speeds can render EVs unprofitable or unaffordable. Sharing Renault's Ampere smart EV platform for two Ford-branded models that will arrive starting in early 2028 helps to create scale needed for profitability. Ford declined to disclose expected pricing.

EVs represent 16% of European new-car sales, below the 25% of new vehicle registrations required to meet Europe’s 2025 CO2 targets. The Dearborn automaker called for a "realistic and reliable 10-year planning horizon" that allows consumers to drive hybrids for longer instead of forcing a change they aren't ready to make.

“We need to enable everyone to benefit from electrification and letting customers choose — whether that’s fully electric or hybrid vehicles,” Jim Baumbick, the new president of Ford Europe, said in a statement. “It is about making the transition more attractive and more affordable for all consumers and businesses, stimulating demand rather than stifling it.”

Added Farley in a Monday op-ed in the Financial Times: "Setting unrealistic regulations only to adjust them at the end of each year when consumers do not show up is a recipe for turmoil."

The tension centers around environmental concerns and fears over competition from the Chinese, who already are producing low-cost EVs and have the capacity to produce every new vehicle sold in Europe. U.S. President Donald Trump last week announced relaxed fuel economy standards through 2031.

Ford argues that with manufacturers investing hundreds of billions of dollars into EVs, governments must match that commitment with consistent purchase incentives on which several nations have pulled back and a charging infrastructure that extends beyond urban areas.

The vehicles co-developed by Ford and Renault will be built at Ampere’s ElectriCity plant in the north of France. Ampere is an EV and software subsidiary of Renault that it had planned to spin off, but the company changed those plans last year.

"This partnership shows the strength of our partnership know-how and competitiveness in Europe," Renault CEO François Provost said in a statement. "In the long term, combining our strengths with Ford will make us more innovative and more responsive in a fast-changing European automotive market."

The Blue Oval said it'll lead the design and driving dynamics of the vehicles to ensure they are distinctly Ford. The vehicles are the start of a new generation of multi-energy vehicles in Europe from the company. A news release notes its Valencia plant in Spain will play a role in those product plans.

Ford and Renault also have also signed a letter of intent for a European light commercial vehicle collaboration. They'll explore joint development and manufacturing of Ford- and Renault-branded commercial vehicles.

Ford also called aggressive CO2 regulations in Europe on commercial vehicles an "economic tax on the backbone of Europe," citing that 8% of vans are electric. The company suggested it unfairly penalizes small- and medium-sized businesses.

Ford in 2024 said it was cutting 4,000 jobs in Europe by the end of 2027 mostly in Germany and the United Kingdom. The move was made to focus on its Ford Pro commercial business that represents most of its revenues there, reduce costs, and respond to underperforming EV sales.

"To be clear, the industry is not asking for a bailout," Farley wrote in the op-ed. "We are not asking for protectionism to shield inefficiency. At Ford, we will continue to do the hard work of restructuring. We have closed legacy facilities, reduced our workforce and slimmed down costs to become more agile."

Renault isn't Ford's first European partnership. Ford Otosan is its joint venture with Koç Holding that builds commercial vans in Turkey. The Blue Oval also collaborates with Volkswagen AG on commercial and passenger vehicles. Vehicles from that alliance are produced at Ford's Cologne Electric Vehicle Center.

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