It's possible it's another stopgap approach similar to the VW deal, allowing them to spread out costs and getting them back in the market until they can develop their own?

Maybe Ford is being a little vague/ misleading here until it gets a clearer picture on USMCA and tariffs on European products. Ford hoping that by 2027-2028 everything to do with tariff rates will be set.

Couple things to consider: A segment is roughly 110-150 inches long   B Segment is 146-165 inches long   They are also narrower then C segment also.   So that being said, once you start making major changes to the passenger crash cell like making it narrower and shorter, your losing cost savings-your better off using something designed to meet that criteria vs modifying C class product. Also i'm going to assume that A/B class uses more cost sensitive/Less complex parts to make it cheaper to build-i.e. things like an independent rear end on a FWD product might be a solid axle on B sized car that wouldn't lend itself well to a more luxurious product.   

I could see a small market with the RV crowd.  It could take the place of the long-gone Smart Car.  People could haul it on the back of their semi pulling a fifth wheel, or it's small enough to fit in a trailer behind a motorhome so you can take other stuff along and still have room for the "car".  Gives you the golf cart size, but with full ability to drive it on the road.

'Before they forced us back to the office my buddy sold his house to his son who had moved from NYC during Covid and bought an RV and spent over a year driving around the country and working remotely.

I'm just stoooopid!

I see what you guys are saying, but I feel like if you developed a really flexible, cost efficient platform for C class sized vehicles, modifying it over time to be used for even smaller vehicles wouldn't be an insanely difficult task.    Maybe that's the plan, but it's gonna take awhile so they're partnering with Renault to get products out there quickly and then replace those products with their own platform as the products from this merger reach the end of their shelf life?

Everything we know regarding CE1 is focused on compact models - Maverick, Escape/Kuga, Focus, etc.  I don't know if it was designed to be able to go smaller/into the sub-compact models.   This move makes sense if it's meant for Fiesta sized models (or smaller), otherwise, I'm there with you that it's confusing if it is meant for compacts, which CE1 should cover.

C class is "small" for North America.    Its standard size for the rest for the world. 

I live near the beach and in the summer time I've seen quite a few of those Moke LSV in the area. But its also a low speed vehicle that doesn't go faster then 25 MPH either.