- Ford will expand partnerships with Chinese automakers.
- Jim Farley still wants Chinese cars kept out of the U.S.
- CEO says it must learn from China to stay competitive.
Ford CEO Jim Farley is a unique automotive executive. He’s one of the few who opens up about his personal views on the industry. Over the last few years, he’s made no bones about it: Chinese automakers are both impressive and terrifying. Now, he’s made a decision to do what he can to ensure Ford learns what it can from those same automakers. The Blue Oval brand will work more closely with Chinese automakers while also fighting to keep them out of the USA.
Farley told The Wall Street Journal that Ford intends to expand partnerships with Chinese manufacturers in markets outside America because, in his words, “They’re really leading the world in many ways when you look at the technology and the cost and the speed of what they’re doing.” That’s a powerful statement from anyone in Farley’s position. He’s seen the bleeding edge of the industry.
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That knowledge no doubt contributed to him saying just days earlier in an interview with Fox News that Chinese automakers would devastate the U.S. auto industry if they were allowed into the market. “There is no way this is a fair fight,” he said.
Chinese companies like BYD, Geely, Xiaomi, and SAIC aren’t just building cheaper cars. They’re building them faster, with more advanced software, better batteries, and at prices Western automakers often can’t match.
In Farley’s eyes, he believes that countries that allowed Chinese cars into their market “saw their factories and their jobs vanish.” That’s where his new plan to work alongside these automakers comes into play.
“Having a plan before we go fast, either in local production or imports from China, is the most important moment. We’re in that moment right now,” he said. In other words, Ford wants access to China’s expertise abroad while buying itself time to avoid getting steamrolled at home.
There’s a clear logic to that strategy even if the details of how it’ll go down are unknown right now. Ford already has huge operations in China, and partnerships with local companies could help it remain competitive in regions like Europe, South America, Southeast Asia, and even Mexico, where Chinese automakers are rapidly gaining ground. If Farley’s plan works, Ford will be better prepared to deal with Chinese automakers selling cars in America, whether that ever happens or not.
Photo Geely / Ford
