【By Chen Sijia, Observers Network】Last year, the CEO of Ford Motor Company, Jim Farley, commuted in a car not produced by his own company to understand the competition. Farley spent six months test-driving a Xiaomi SU7. Farley said the performance of this Chinese-made electric vehicle was impressive, "This car is great, I don't want to give it up."

Ford has ways to import an electric vehicle from China for testing, but under the impact of U.S. tariff policies and import restrictions, ordinary Americans cannot purchase these cost-effective, technologically advanced Chinese cars. Farley once publicly stated that if more Americans could drive these Chinese electric vehicles, Ford's future would be worrying.

On August 14 local time, Patrick George, editor-in-chief of the U.S. automotive media InsideEVs, wrote an article in The Atlantic, stating that Chinese electric vehicles are sweeping the globe, and it is becoming increasingly difficult to prevent Chinese cars from entering the U.S. market. Many analysts predict that Chinese automakers will eventually be granted permission to build factories in the United States, although cars produced in the U.S. may be more expensive, they will still be more advanced.

George stated in the article that Chinese electric vehicles are not only affordable but also highly technologically advanced. In other parts of the world, traditional automakers are facing huge pressure as Chinese cars continue to expand their market share. For example, in the European market, the market share of Chinese brands is now comparable to that of the German legacy automaker Mercedes-Benz.

The U.S. continues to use high tariffs and import restrictions to block Chinese electric vehicles from entering the U.S. market, but Farley recently claimed: "We are engaged in global competition with China. If we lose, Ford has no future." This week, Ford announced a series of countermeasures at a factory in Louisville, Kentucky, aiming to produce more affordable electric vehicles.

Ford Motor Company factory in Louisville, Kentucky, Kentucky, U.S. Visual China

The article states that Ford will break the mobile assembly line system established by its founder Henry Ford over a century ago, planning to start producing a new electric truck priced at $30,000 at the Louisville factory from 2027. According to today's standards, this will be one of the cheapest new electric vehicles available for purchase domestically in the U.S.

The cost of this new electric truck will be far lower than the electric trucks currently sold by Ford, the F-150 Lightning Pro, which starts at around $55,000. Many Americans might be excited about a well-performing, affordable electric truck, but what is more important than the price is the change in the manufacturing method.

George pointed out that Ford's other electric vehicles, including the F-150 Lightning and the Mustang Mach-E, were largely modified from existing gasoline-powered models. These vehicles were manufactured by assembling multiple components, like a house that has undergone multiple renovations over several decades. This modification design requires a series of compromises and faces high costs.

He believes that Ford's new strategy is like tearing down the whole house and building an electric vehicle production line from scratch. But in a way, Ford is just catching up with what China has already done.

Tu Le, founder of the consulting company "China Automotive Insight," said that as electric vehicles develop, batteries have become the most expensive component of the vehicle. Therefore, Chinese automakers and manufacturers such as Tesla in the U.S. are reconfiguring the manufacturing and assembly methods of body parts and other components to reduce costs.

Moreover, as Chinese electric vehicles sweep the globe, it is becoming increasingly difficult for the U.S. to keep Chinese cars out. Many analysts believe that companies such as BYD will eventually be granted permission to build factories in the U.S. Tu Le predicted, "I think that Chinese electric vehicles will start being produced in the U.S. during Trump's current term."

The article points out that Chinese electric vehicles produced in the U.S. may be more expensive, but they will still be more advanced.

George analyzed that just with a $30,000 electric truck, American companies such as Ford are far from being able to compete with Chinese electric vehicles that are both high-quality and low-cost. He said that China has a vast pool of engineering talent, the best battery technology in the world, and other advantages, while the recent "Big and Beautiful" Act passed by the Trump administration has weakened subsidies and incentives for American electric vehicles.

Alan Clark, Ford's senior engineer for advanced electric vehicle development, who previously worked at Tesla, admitted, "We don't have the illusion of reducing costs through a brilliant idea. We must do hundreds of things to reach this price."

Traditional automakers made "major commitments" to the upcoming electric vehicle revolution, but when things became difficult, they often retreated and rethought their strategies. Last year, Ford canceled a large electric SUV, and its existing electric vehicle brand is gradually becoming outdated, while competitors have been continuously launching new models.

George pointed out that Ford's new electric truck may take at least two years before it is available on the market, but Chinese automakers will not wait. Chinese electric vehicles are rapidly spreading in developing countries such as Nepal, Sri Lanka, Djibouti, and Ethiopia. For American companies like Ford, the worst-case scenario is that they may again change their manufacturing methods, but it still isn't enough.

This article is an exclusive piece by Observers Network. Unauthorized reproduction is prohibited.

Original: https://www.toutiao.com/article/7538638143281562155/

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