Ford CEO Jim Farley acknowledged the automaker is in “a fight for our lives in our industry” as it seeks to remain competitive in Europe amid pressure from Chinese competitors. One of its weapons to stave off those threats is a partnership with French automaker Renault Group.

The two automakers announced an agreement Tuesday to bring two affordable Ford-branded electric vehicles to the European market in 2028. Ford will lead the design and Renault will assemble the vehicles at its factory in northern France. The EVs will be built on Renault’s technology platform known as Ampere.

The companies have also agreed to “explore” making light commercial vehicles together.

The partnership is part of what Ford has described as the next phase of its European transformation — a plan that aims to make the U.S. automaker more agile and cost-efficient in a market teeming with cheaper Chinese vehicles from companies like BYD and SAIC Motor.

“As an American company, we see Europe as the frontline in the global transformation of our industry,” said Farley in a statement. “How we compete here — how we innovate, partner, and invest — will write the playbook for the next generation. We are committed to a vibrant future in Europe, but that future requires us to move with greater speed and efficiency than ever before.”