Ford has decided to entrust Renault with the development and production of its future small electric cars, aiming to significantly reduce costs and restore financial balance in an increasingly complex market environment.
After closing the last fiscal year with an $8.2 billion loss, the group led by Jim Farley also faced $15.5 billion in write-downs concentrated in the fourth quarter alone. A large portion of these losses relates directly to electric vehicle projects. Farley himself admitted that early zero-emission models, from the Mustang Mach-E to the Puma Gen-E and vehicles based on Volkswagen’s MEB platform, required massive investment and generated substantial losses. The industrial model became too expensive and difficult to sustain in the long term.
Ford partners with Renault on future electric city cars amid EV losses
The response comes from Europe, and specifically from France. Ford has chosen to partner with Renault to design and assemble two future electric city cars for the European market. The American automaker will retain control over design and driving dynamics, while much of the engineering and production will fall to the French partner. This decision reflects the need to drastically cut costs. The first models from this collaboration should arrive in 2028.
At the same time, Ford is simplifying its electric strategy in the United States. The clearest sign of this shift is the halt of the F-150 Lightning pickup, affected by production costs that exceed current demand. Ford has also canceled a large three-row electric SUV before launch. The company now focuses on a new, simpler and more cost-efficient architecture called UEV, designed to improve profitability without relying on government incentives. The first model based on this platform will arrive in 2027 and will be a pickup priced between roughly $30,000 and $35,000.
Despite the challenges, Ford recorded strong growth in electric vehicle sales in Europe, with nearly 98,000 units delivered last year, up 178%. The Explorer led sales, followed by the Puma Gen-E. This progress allowed the electric division to slightly reduce losses, although they remain extremely high. The situation remains delicate, especially for the European network, which has already lost historic models such as Fiesta and Focus. Maintaining sufficient EV volumes remains essential to meet emissions regulations and sustain the brand’s commercial ecosystem.
