PARIS — Ford F.N and Renault RENA.PA will jointly develop small, affordable electric vehicles for the European market, the companies said Tuesday, according to Reuters. The partnership also includes producing commercial vans to cut costs and counter growing competition from Chinese automakers.

Ford CEO Jim Farley told reporters in Paris, “We know we’re in a fight for our lives in our industry. There is no better example than here in Europe,” referring to cheaper Chinese rivals.

The first Ford-branded EV produced by Renault will hit European showrooms in early 2028. The vehicle will be smaller than Ford’s U.S. EVs, filling a gap in the automaker’s lineup.

The two companies also plan to jointly develop Renault and Ford vans for Europe. Farley said the collaboration could create “a powerhouse of light commercial vehicles in Europe that would be very difficult for the Chinese to compete with.”

Renault CEO Francois Provost added, “The Chinese will come soon, and that’s why I don’t want to wait.”

The partnership emerged after a Renault team visited Ford’s Detroit headquarters in March. Both companies stressed there are no plans to merge.

Ford’s share of Europe’s passenger car market has dropped from 6.1% in 2019 to 3.3% through October 2025. Using Renault’s EV platforms with Ford designs should help the U.S. automaker compete with Volkswagen and Chinese entrants in Europe.

Renault, Europe’s smallest mainstream automaker, does not sell cars in China or the U.S. The alliance will help Renault scale production and lower costs while boosting Ford’s EV presence on the continent.