Ford CEO Jim Farley Says VW Partnership Not Impacted By Renault Tie Up
Given the fact that Ford entered into a similar partnership with Volkswagen back in 2020 that has since led to the creation of two EVs riding on the latter's MEB platform, it's certainly fair to wonder if that relationship will be impacted.
However, that doesn't seem to be the case, as Ford CEO Jim Farley told journalists that the partnership between The Blue Oval and Renault won't impact its agreement with VW at all, according to Automotive News. "I hope you don’t portray this as lovers finding new lovers," he said. We have a deep understanding of Volkswagen’s industrial system. We know their supply chain, we know their cost and we understand their strength and their opportunities. We made a thorough investigation and Renault came out on top, for multiple reasons, but cost is among the top reasons."
I have to assume Hyundai benefits from the overall Hyundai conglomerate too, no? i.e., shipping, production, etc. that helps pull down their costs and boost profitability.
Thus Fords dilemma with affordable vehicles. Why sell lower-margin vehicles if you don't have to?
Overall, Hyundai is more profitable than Ford. Even with lower margin vehicles.
The problem with this is that Renault is tied to Stellantis for commercial vehicles. Fiat, Peugeot and Renault vans in Europe are the same vans. The Ford Transit family, and Mercedes are the only competition offered. This almost stalled the Stellantis merger in the first place. Renault would probably have to cut its current partnership to Join with Ford.