The Automotive Update: Renault and Ford collaboration plus global EV enthusiasm cools
12 December 2025
What has drawn two automotive giants to collaborate on future vehicles? How are delays impacting the EU emissions target discussions? Autovista24 special content editor Phil Curry discusses the week’s biggest stories in The Automotive Update podcast.
In the latest episode, further details on the seismic collaboration between Renault and Ford. Also, a look at what the automotive industry wants to see in the delayed EU discussions on 2035 CO2 targets. Plus, is electric vehicle (EV) interest cooling, and what could renewed negotiations between China and the EU mean for Chinese Built EVs.
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Renault and Ford join forces on EVs
Ford is to partner with Renault on development of battery-electric vehicles (BEVs) and all-electric vans. The agreement will see the development of two Ford-branded EVs based on the Ampere platform that underpins the Renault 5 and Renault 4. These vehicles will be produced at Renault’s ElectriCity manufacturing plant in the north of France.
Designed by Ford, and developed with Renault Group, the two cars will feature distinctive driving dynamics, authentic Ford-brand DNA and intuitive experiences. The first of the two vehicles is expected in showrooms in early 2028.
The RAC has predicted that the partnership could signal a return for the Ford Fiesta. The model was discontinued in 2023, as the carmaker focused on larger vehicles. However, a revival in the small car market could see the popular vehicle return, with the underpinnings of the Renault 5.
EU emissions target delay
The European Commission has delayed discussions of a new proposal to potentially revise the EU’s 2035 ban on the sale of new CO₂-emitting cars and vans. According to Reuters, talks are now expected to happen on 16 December. The postponement comes as policymakers and industry leaders call for adjustments to the current strategy.
ACEA director general Sigrid de Vries recently highlighted the industry’s slow post-COVID-19 recovery and limited investment in EV charging infrastructure. She also argued that the 2030 and 2035 emissions targets are no longer realistic. De Vries offered five recommendations, including stronger consumer incentives , and greater technological neutrality.
Environmental groups oppose the easing of restrictions. Lucien Mathieu, cars director at Transport & Environment, warned against permitting biofuels and plug-in hybrids (PHEVs) beyond 2035. ’[The new proposals]’may give them short-term comfort, but strategically it is a mistake that risks pushing the European industry into a dead end,’ he stated.
Chinese EV tariff talks resume
China’s commerce ministry has stated that negotiations with the EU over a minimum price plan for Chinese-built electric vehicles have restarted, Reuters has reported. The ministry has also urged the bloc not to talk independently with manufacturers.
The EU approved tariffs of up to 45.3% in October 2024. This followed a European Commission investigation into whether Chinese carmakers were benefiting from unfair subsidies that could impact competition in Europe.
China insists its manufacturers are simply more competitive than their European counterparts. As a result, Beijing has urged Brussels to accept a minimum price plan in place of tariffs.
Study reveals a return to ICE
A new study by EY has revealed that many global car buyers are shifting back from EVs to internal combustion (ICE) models.
The EY Mobility Consumer Index shows that 50% of global car buyers intend to purchase an internal combustion engine vehicle in the next 24 months. This is an increase of 13 percentage points (pp) from 2024. In addition, battery-electric vehicle preference has fallen to 14pp, a drop of 10pp. Meanwhile hybrids preference had declined to 16%, down five percentage points.
Range anxiety appears to continue to be one of the top barriers for consumers choosing EVs. According to the report, 29% of respondents cited this as their top concern, while 28% pointed to the lack of EV charging infrastructure.
New autonomous partnerships
Mercedes-Benz and Momenta are ushering in the next stage of automated driving with the launch of an SAE Level 4 robotaxi service. The carmaker, together with its advanced driver assistance systems partner for China, is announcing this driverless shuttle service based on the new Mercedes-Benz S-Class.
Following an initial test phase in Abu Dhabi, the partners intend to roll out the service more broadly to other locations and markets.
Meanwhile Stellantis and mobility platform Bolt have entered a partnership. They will jointly explore the development and deployment of Level 4 autonomous vehicles for commercial operations across Europe.
Automotive AI investment decline?
By 2029, only 5% of carmakers will maintain strong, AI investment growth, a decline from over 95% today. That is the forecast from business and technology insights company, Gartner.
The firm predicts that only a handful of automotive companies will maintain ambitious AI initiatives after the next five years. Organisations with strong software foundations, technology awareness in its leadership, and a consistent very long-term focus on AI will pull ahead from the rest, creating a competitive AI divide.
Gartner predicts that by 2030, at least one manufacturer will achieve fully automated vehicle assembly, marking a historic shift in the automotive sector.
