- Ford CEO Jim Farley warns that China’s EV dominance could jeopardize the company’s future.
- He says Chinese EVs lead in tech, cost, and quality, and the West is falling behind.
- Ford is now pivoting from EVs to hybrids, but that may not be enough to stay in the race.
The EV race isn’t just heating up, it’s turning existential for legacy automakers. At the Aspen Ideas Festival last Friday, Ford CEO Jim Farley made that reality clear. If American car companies can’t keep up with China’s EV momentum, he warned, Ford’s future may be in jeopardy.
“We’re in a global competition with China, and it’s not just EVs,” he said before dropping the hammer. “If we lose this, we do not have a future Ford,” he said. This man isn’t speaking from hearsay either. He’s speaking from experience.
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His warning comes after a string of trips to China, six or seven in the past year, he says. There, he saw firsthand how fast Chinese automakers are outpacing the West. It’s the most humbling thing I have ever seen,” he explained.” Why be so blown away by a nation that can’t sell cars in the USA? It comes down to production.
Chinese EVs: High Volume, High Quality
According to Farley, not only is China making more EVs than anybody else, but their quality isn’t lacking either. “Seventy percent of all EVs in the world, electric vehicles, are made in China,” Farley said. That statement comes not long after Xiaomi launched the YU7, a $35,000 luxury SUV that allegedly has 200,000 orders already.
“They have far superior in-vehicle technology. Huawei and Xiaomi are in every car. You get in, you don’t have to pair your phone. Automatically, your whole digital life is mirrored in the car. Beyond that, their cost, the quality of their vehicles is far superior to what I see in the West,” Farley says.
So the message is clear. Farley wants to see the U.S. catch up with China as quickly as possible. Despite that, Ford is adapting its strategy to produce fewer EVs, not more. That’s because the markets Ford caters to seem more interested in hybrids right now. Business Insider points out that Ford’s shares are up by more than 9 percent so far this year.
Still, the larger question lingers: will adjusting course be enough to compete long-term in a global EV market increasingly defined by China’s dominance? Farley isn’t waiting for the answer; he’s already sounding the alarm.
