The head of Ford Motor Company has issued a stark warning, declaring that traditional Western automakers are engaged in a battle for survival against a wave of competition from China. The statement accompanied the announcement of a strategic partnership between the American car giant and France’s Renault Group.
The two companies have revealed plans to jointly develop two new, smaller electric vehicle models, with the first expected to reach the market by 2028. The collaboration will also explore joint production of commercial vans.
Ford’s chief executive framed the challenge in stark terms, telling reporters that the industry is in a fundamental struggle for its future, with the European market serving as a prime battleground. The ascent of Chinese electric vehicle manufacturers, who have rapidly captured market share by offering competitively priced and well-regarded models, has intensified pressure on European and American rivals. These legacy manufacturers have faced challenges in developing affordable, compact electric cars, an area where Chinese firms have excelled.
The new vehicles will utilize an existing electric platform from Renault but will be engineered and branded by Ford. Production is slated for a Renault facility in northern France, a plant already recognized for producing a successful, cost-effective electric model.
Ford’s European operations have faced significant headwinds in recent times, leading to substantial job reductions and scaled-back production plans for new electric models, attributed to economic conditions and softer-than-anticipated demand for electric cars. The company’s leader has also been vocal in criticizing regulatory targets in Europe, arguing they impose severe burdens on local manufacturers while they contend with an influx of subsidized imports.
The Renault chief executive stated the alliance is designed to enhance innovation and agility for both companies in a rapidly evolving automotive landscape.
In other industry news, BMW announced a leadership transition, with its long-serving chairman of the management board set to retire. His successor, a company veteran, will take the helm later this year. Under the outgoing leader’s tenure, BMW navigated the growing competitive threat from China, maintaining a relatively stronger position than some of its domestic peers.