Ford CEO: "Chinese cars make us feel nervous and awed!"
On May 25, South Korean media outlet Today's Finance published an article stating that Ford Motor Company CEO Jim Farley considers Chinese electric vehicles the biggest competitor—not Tesla. He is now pondering how traditional automakers can emulate Chinese companies.
In 2024, Farley personally drove Xiaomi’s newly launched electric vehicle, the SU7, for six months. Xiaomi, best known for smartphones, introduced its first electric car with this model. After six months, Farley said, “I don’t even want to switch cars anymore.”
In a recent interview, Farley explained why he chose Xiaomi over Tesla. He stated, “I’m not trying to criticize Tesla, but honestly, they no longer have a ‘new model’.”
Tesla has released refreshed versions of the Model Y and Model 3 in response to the pressure from Chinese automakers, but critics argue these are merely “minor updates.” Meanwhile, BYD is hailed as the industry leader in sales cost, supply chain management, manufacturing processes, and intellectual property.
Currently, high tariffs prevent Chinese electric vehicles from entering the U.S. market. However, in overseas markets such as Europe, BYD’s market share is growing at an astonishing pace, and it is expected to surpass Tesla by 2025 to become the world’s largest pure-electric vehicle manufacturer.
Farley emphasized that Ford must benchmark itself against BYD, launching various models popular among Americans at a price point of $30,000 instead of $50,000. To achieve this, Ford has made major revisions to its electric vehicle strategy.
Ford’s new strategy focuses on hybrid vehicles and extended-range electric vehicles. The “F-150 Lightning,” previously seen as the future direction of Ford’s EV lineup, is now planned to be redesigned as an extended-range electric vehicle.
That said, this does not mean Ford will exit the pure-electric vehicle space. Ford plans to launch a $30,000 electric pickup truck before 2027—expected to be the first model in its new low-cost EV series. For comparison, the starting price of the F-150 Lightning is $54,780.
He is one of the most vocal advocates urging American automakers to seriously study the Chinese market. Previously, he stated that Ford’s biggest competitors are not General Motors or Toyota, but Chinese automakers.
Farley explained that Ford is transforming its business model to learn from Chinese rivals, aiming to become a better company. He said, “The gift China has given us is this—it makes us nervous, awed, and concerned about their rapid progress. Therefore, we can no longer afford to be complacent.”
Original source: toutiao.com/article/1866124874758153/
Disclaimer: The views expressed in this article are solely those of the author.