Will Ford's Leaner EV Approach Give It a Stronger Foothold in Europe?

Core Insights - Ford is partnering with Renault to develop affordable electric vehicles (EVs) in Europe, addressing its declining market share in the region [1][4] - The collaboration will utilize Renault's Ampere platform to create smaller, cost-effective Ford-branded EVs, enhancing competitiveness against low-priced Chinese competitors [2][5] - Production will occur in northern France, leveraging Renault's existing infrastructure to minimize Ford's upfront investment in new EV lines [3][4] Summary by Sections Partnership Details - The partnership focuses on developing smaller, affordable EVs using Renault's Ampere platform, aimed at cost competitiveness in a market with increasing competition from Chinese automakers [2][5] - The first model is expected to launch in early 2028, marking Ford's renewed product strategy in Europe [4] Production and Investment - Production will take place within Renault's ElectriCity network in northern France, allowing Ford to avoid significant initial investments typically associated with launching new EV lines [3] - This collaboration is particularly beneficial as Ford faces challenges in funding both combustion-engine programs and next-generation EVs due to reduced federal support in the U.S. [3] Strategic Positioning - The alliance with Renault is expected to enhance Ford's EV pipeline, reduce costs, and improve its competitive stance against both traditional rivals and fast-moving Chinese manufacturers [5] - This partnership complements Ford's existing collaboration with Volkswagen, providing a diversified strategy for the European EV market [4][8] Market Performance - Ford's shares have increased by 38% year to date, outperforming the industry's growth of 16% [7] - From a valuation perspective, Ford appears undervalued with a forward sales multiple of 0.33 compared to the industry's 3.44 [10]