Ford CEO Jim Farley has been vocal about his love for Chinese EVs. It was a year ago when the Blue Oval’s boss told the public that he was driving a Xiaomi SU7—and that he loved it. Then, a few months ago, Farley said he found the Chinese auto industry “humbling.” Now, his words are becoming much more dire.
In an interview this week with CBS Sunday Morning, Ford’s CEO compared China’s car industry of today to that of 1980s Japan, but “on steroids.” According to Farley:
‘They have enough [production] capacity in China with existing factories to serve the entire North American market, put us all out of business. Japan never had that, so this is a completely different level of risk for our industry.’
Farley then admitted that the Chinese cars being made today are cars Americans would willingly buy, calling the SU7 he’s driving “high quality” with a “great digital experience.” He still drives one, he said, because Chinese EVs are the “competition, and to beat them, you have to know them.”
This has led Farley to make changes within Ford, prompting the company to build smaller, cheaper electric vehicles. Earlier this year, the automaker announced it would introduce a new manufacturing system so it could build a $30,000 electric pickup before expanding its portfolio.
It’s a big bet for the automaker, but one Ford is making in direct response to the Chinese auto industry, despite the US subjecting EVs from that country to a 100-percent tariff. While the tariffs effectively ban cheap Chinese EVs from entering the US market, Ford sells the Mustang Mach-E in China, and it wants to be competitive.
Farley said earlier this year that Chinese EVs have “superior in-car technology” and that automakers “are in a global competition with China, and it’s not just EVs. And if we lose this, we do not have a future at Ford.”
Source:
CBS Sunday Morning
Read the full article here
