Ford CEO: Chinese cars pose a greater threat than Japan, and could drive American automakers out of business.

He said he is not driving a car he produces himself now, but the Xiaomi S7 from China.

Ford CEO Jim Farley has indeed publicly stated that the competitive threat from China's automotive industry is more intense than the impact brought by Japanese cars in the 1980s, and warned that if competition is left unchecked, it may threaten the survival of American automakers.

Information related to Farley's comments

Core point: The threat from China to the U.S. automotive industry is an "enhanced version" of the 1980s Japanese impact

Key argument: China's current automotive production capacity is sufficient to cover the entire North American market

Competitive positioning: Comparing China's electric vehicle industry to a "700-pound gorilla," stating that Tesla, General Motors, and Ford cannot currently compete with it

Personal experience: He has driven the Xiaomi SU7 for more than half a year and gave it a high rating

Farley's concerns are mainly based on the obvious advantages currently held by Chinese automakers

Chinese electric vehicles integrate technology from tech companies such as Huawei and Xiaomi, providing a seamless digital lifestyle experience. Farley admitted that Ford currently cannot offer a similar level of technological experience.

China has the most complete and cost-efficient supply chain in the electric vehicle sector. Farley cited an example, stating that BYD's battery costs are 30% lower than Ford's, and Chinese automakers can rapidly and cost-effectively iterate their products.

In 2025, about 70% of global electric vehicles will be produced in China. The large domestic market provides the foundation for technological iteration and cost distribution.

Facing the challenge, Ford is not sitting idle and has launched an aggressive transformation plan.

Farley publicly criticized the U.S. tariff policy, pointing out that Ford pays tariffs as high as 70% on some parts, which has added about $2 billion in additional costs and eaten into about 20% of its global profits. He believes that relying on protectionist policies is not sustainable in the long term.

Original: toutiao.com/article/1855170973577228/

Statement: This article represents the personal views of the author.