Ford CEO: It’s too late for Europe. He is working with Geely and CATL himself

Jim Farley, Ford’s CEO, called on the U.S. on September 30 to approach Chinese automakers cautiously. He argued that Europe reacted too late, and local brands are finding it increasingly difficult to compete with cheaper electric vehicles from China.

Chinese electric vehicles already hold 12% of the European market

Farley claims that electric cars from Chinese brands account for 12% of the European market, with that share reaching 25% in Mexico. CNBC reports that China’s global share of EVs has increased by 70%. However, the data does not specify the time period over which this growth occurred.

The advantage of Chinese manufacturers doesn’t lie solely in price. Companies such as BYD, Geely, and SAIC offer an increasingly wide range of models, long ranges, and technologies for which European brands often charge significantly more. Tariffs in the European Union make expansion difficult but have not stopped it.

Ford’s CEO added national security to the arguments as well. He believes a large number of Chinese cars in the U.S. could pose risks related to data collection. As Farley put it, these vehicles can “record everything.” This is the manufacturer’s position, not the result of any audit or study he cited.

Ford wants to compete with China and leverage its technologies

Farley’s statements sound less definitive when we consider Ford’s own actions. The American company has partnered with Geely to produce cars in Spain. At the same time, it is working on a project with CATL, a Chinese battery industry giant that has faced criticism from the U.S. administration.

Farley sees no contradiction here. Ford can collaborate with Chinese firms where it does not own intellectual property and can reduce investment costs, especially in Europe and Southeast Asia. Meanwhile, the company wants to compete with them. In short, Chinese technology is welcome, but Chinese cars are not necessarily so.

The Donald Trump administration recently suggested that some Chinese electric vehicles might be allowed to be sold in the U.S. if they were produced locally. The problem is that a law passed by Congress imposes restrictions on manufacturers in which Chinese ownership accounts for at least 15 percent.

It is still unclear which approach will ultimately prevail. Ford wants time to prepare for competition, but it already utilizes partnerships designed to help reduce costs. According to Farley, Europe does not have such time.

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