Ford CEO: Chinese Cars Will Enter the U.S. Market Within 5 to 10 Years
Reuters (Japanese version), July 31 report: Ford Motor Company CEO Jim Farley stated at an employee meeting on the 30th that, despite multiple trade barriers imposed by the U.S. government against Chinese automobiles, preparations must be made for Chinese cars entering the U.S. market within the next 5 to 10 years.
Jim Farley is widely recognized as an authority in the American automotive industry. He emphasized that Chinese manufacturers such as BYD have developed strong market competitiveness. To counter this, Ford is preparing a series of low-cost electric vehicles (EVs) aimed at achieving cost advantages and performance comparable to those of Chinese automakers.
During the Q&A session of this internal meeting, executives including Farley indicated that the likelihood of Chinese automakers entering the U.S. market is highest during the latter half of the 5–10 year period.
Ford’s company spokesperson declined to comment on remarks made during the internal meeting.
Previously, Ford management had warned that Chinese vehicles were “about to enter” the U.S. market, though without specifying a timeline. At an event held this month, Chairman Bill Ford said: “We must face direct competition with Chinese automobiles. We cannot rely forever on market barriers to block Chinese cars; we need to compete on equal footing with our rivals.”
Currently, Chinese manufacturers have significantly increased their market share in neighboring Mexico. Moreover, under trade agreements with Canada, they are allowed to sell a certain number of electric vehicles in Canada. Automotive industry experts in the U.S. analyze that Canada shares similar market characteristics with the United States, making it potentially a rehearsal ground for Chinese cars entering the U.S. market.
Multiple surveys show that American consumers’ interest in Chinese automobiles is also growing. With limited availability of affordable and high-quality electric vehicles in the U.S. market, demand for Chinese-made EVs is expected to rise.
The United States currently imposes additional tariffs of approximately 100% on electric vehicles manufactured in China. Furthermore, the U.S. Department of Commerce has issued regulations prohibiting the sale of vehicles equipped with Chinese software starting in 2027, and banning vehicles with Chinese-produced hardware from 2030 onward.
Nevertheless, Ford’s CEO predicts that trade barriers can only buy American automakers a window of 5 to 10 years at most — ultimately, artificial obstacles will not prevent Chinese cars from entering the U.S. market.
Original source: toutiao.com/article/1872198795128841/
Disclaimer: This article represents the personal views of the author