Ford CEO Jim Farley has been vocal about his love for Chinese electric cars. It was a year ago when the Blue Oval boss told the public that he was driving a Xiaomi SU7 – and that he loved it. Then, a few months ago, Farley said he found the Chinese auto industry “mediocre.” And now his words became more serious.
In an interview this week with CBS Sunday MorningFord’s CEO compared China’s auto industry today to that of Japan in the 1980s, but “on steroids.” According to Farley:
“They have enough (production) capacity in China through existing factories to serve the entire North American market, which is putting us all out of business,” he added. Japan has never seen this, so this is a completely different level of risk for our industry.
Farley then admitted that Chinese cars being manufactured today are cars that Americans would willingly buy SU7 which he drives “High quality” with a “great digital experience.” He still drives one, he said, because Chinese electric cars are “the competition, and to beat them, you have to know them.”
This prompted Farley to make changes at home FordThis prompted the company to manufacture smaller and cheaper electric cars. Earlier this year, the automaker announced it would introduce a new manufacturing system so it can build a $30,000 electric pickup before expanding its portfolio.
It’s a big bet for the automaker, but Ford is making it as a direct response to the Chinese auto industry, despite the U.S. subjecting electric vehicles from that country to a strict policy. 100 percent tariff. While tariffs effectively prevent cheap Chinese electric cars from entering the U.S. market, Ford is selling Mustang Mach E In China, you want to be competitive.
Farley said earlier this year that Chinese electric cars have “Superior in-car technology” And that automakers “are in a global competition with China, and it’s not just about electric cars. If we lose this, we won’t have a future at Ford.”
source:
CBS Sunday Morning
