The electric vehicle revolution is reshaping the automotive industry, forcing traditional rivals into unprecedented collaborations. In the latest DriveSmart newsletter, Steve Fowler explores how carmakers like Stellantis, Jaguar Land Rover, and Ford are forming unlikely partnerships to share costs, technology, and platforms.
New Alliances in the EV Era
It used to be simpler: Ford made Fords, Renault made Renaults, and Jaguar Land Rover made Jaguars and Land Rovers. But today, the industry is a web of alliances. The latest example is Stellantis and JLR, which have agreed to explore collaboration synergies in product and technology development in the United States. This pairing is significant because Jeep, owned by Stellantis, has long competed with Land Rover in the SUV market.
Stellantis is also forming a joint venture with Chinese carmaker Dongfeng to bring Voyah electric and plug-in hybrid cars to Europe, potentially building them at Stellantis' factory in Rennes, France. Additionally, Stellantis controls Leapmotor International, which aims to expand Leapmotor cars beyond China.
Why Carmakers Are Partnering
The driving force behind these partnerships is the soaring cost of developing electric vehicles. Carmakers need to invest in batteries, motors, platforms, factories, charging infrastructure, and new supply chains, along with software, AI, chips, connectivity, and cybersecurity. Stellantis has outlined a €60bn investment plan over five years, including over €24bn for global platforms and technology. Sharing costs and expertise makes financial sense.
Stellantis is also restructuring its brand portfolio, naming Jeep, Ram, Peugeot, and Fiat as global brands, while Chrysler, Dodge, Citroen, Opel/Vauxhall, and Alfa Romeo become regional brands. This allows the company to develop shared components while maintaining brand identity.
Volkswagen's Mastery of Shared Platforms
The Volkswagen Group has long excelled at sharing engineering across brands like Volkswagen, Audi, Skoda, Seat, and Cupra. Customers appreciate the distinct styling and driving experience, even if hidden parts are shared. This approach reduces costs without sacrificing brand appeal.
Other examples include Toyota and Subaru collaborating on sports cars and electric SUVs, Toyota and Suzuki sharing EV technology, and Ford using Volkswagen's electric platform for the Explorer and Capri. Ford has also agreed to use Renault Group's EV technology for new models built in France.
Challenges and Cautionary Tales
Not all partnerships succeed. The DaimlerChrysler merger unraveled within a decade, and Daimler's partnership with Mitsubishi was also short-lived. The Renault-Nissan alliance has endured but with tensions. Carmakers must ensure that collaborations do not dilute brand identity.
Chinese manufacturers are also building their own families. Chery sells Chery, Omoda, and Jaecoo cars in the UK, with Lepas and iCaur to follow. It is working with JLR on the Freelander as an electric brand using Chery technology.
Beyond Carmakers: Tech and Battery Specialists
Partnerships now extend beyond traditional automakers. Stellantis is working with tech and battery specialists like Applied Intuition, Qualcomm, Wayve, NVIDIA, Uber, Mistral AI, and CATL. The future of cars will be shaped by software, batteries, and AI as much as by vehicle manufacturing.
For consumers, these collaborations should mean better cars arriving faster and at more affordable prices. Shared development spreads the huge costs of new technology. However, carmakers must preserve each brand's unique character to maintain customer loyalty.
The era of the lone car company is over. The next Jeep may be influenced by JLR, the next Ford EV may use Renault technology, and a future Freelander will owe much to Chery. In a world of soaring costs and fierce competition, choosing the right partners is the smartest strategy.
