Ford CEO Farley: It’s “too late” for European automakers with Chinese partners
Image: Ford
Ford CEO Jim Farley warns of risks to the U.S. auto industry from Chinese competitors. At the Automotive News Congress, he said the U.S. must be “extremely cautious about how Chinese manufacturers enter our country.” Citing Europe as an example, Farley noted that automakers from the People’s Republic achieved a 11.7 percent market share there in August, with their sales rising by 111 percent to 97,639 vehicles.
For European countries, it’s too late, according to Farley. The U.S. needs to remain vigilant as Chinese manufacturers push into the American market, he said.
Ford also aims to collaborate with Chinese companies when it is capital-efficient and helps the firm gain expertise in areas where it lacks it. For example, Ford is working with battery manufacturer CATL to produce cheaper batteries at a plant in Michigan. Farley added that Ford will also compete directly with Chinese companies.
Ford is under scrutiny by the U.S. government due to its partnerships with Chinese firms in vehicle and battery technology. This includes a partnership agreed upon in summer with Geely to jointly develop electric vehicles for the European market.
China’s rapid rise as a major automobile exporter has alarmed industry executives and policymakers in Japan, Germany, and the U.S. Automotive News predicts that Chinese exports of around twelve million vehicles to Europe, Latin America, and other regions will occur this year. In 2022, the figure was about three million.
The U.S. has so far kept vehicles from the People’s Republic out of its market largely through a ban on Chinese vehicle software and tariffs exceeding 100 percent. However, industry leaders fear that these protective measures will not last in the long term, according to Automotive News. Lobbyists from automakers, dealers, and parts suppliers are therefore pressing U.S. lawmakers for a permanent ban.
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About the author
Thomas Langenbucher is an expert in electromobility with professional experience in the automotive industry and finance sector. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.
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