UPDATE: Ford CEO Jim Farley has just declared that China is “completely dominating” the global electric vehicle (EV) market, labeling Chinese automakers as the “700-pound gorilla” in the industry. In a revealing episode of The Verge’s “Decoder” podcast released on October 23, 2023, Farley emphasized the stark contrast between American and Chinese EV capabilities.
Farley’s statements underscore an urgent reality for Tesla, General Motors (GM), and Ford, as he noted, “There’s no real competition” from these companies when compared to the rapid advancements being made in China. He highlighted that Chinese automakers benefit significantly from extensive government support, which translates into substantial subsidies and innovative technologies.
“What we’re seeing from China is a complete domination of the EV landscape globally,” Farley asserted. He elaborated on the competitive advantages enjoyed by Chinese firms, citing the presence of hundreds of manufacturers backed by local governments. “They have huge subsidies. It’s new brands like BYD, Geely, and many others,” he explained.
In his previous remarks at the Aspen Ideas Festival in June, Farley referred to China’s EV advancements as the “most humbling thing” he has ever witnessed. He pointed out the superiority of in-vehicle technology, crediting companies like Huawei and Xiaomi for integrating seamless connectivity features that enhance user experience in their vehicles.
The urgency of Farley’s comments reflects a growing concern among American automakers regarding their competitive edge in the global market. “We are in a global competition with China, and it’s not just EVs. If we lose this, we do not have a future Ford,” he stressed.
Farley also praised Xiaomi’s new electric vehicle, the SU7, during a recent discussion, revealing that he has been driving it for six months after importing it from Shanghai to Chicago. “I don’t want to give it up,” he admitted, showcasing his admiration for the vehicle’s technology and design.
This sentiment regarding China’s EV dominance is echoed by other industry leaders. The Centre for Strategic & International Studies reported last year that the Chinese government has invested over $230 billion in funding local EV manufacturers from 2009 to 2023, reinforcing the country’s position as a leader in the EV sector.
RJ Scaringe, CEO of American EV maker Rivian, supported Farley’s analysis in a recent podcast, stating that the impressive cost structures of Chinese EVs stem from the “compounding benefits of a lower cost of capital,” rather than any single groundbreaking innovation.
With the EV market evolving rapidly, the implications of China’s dominance are significant for consumers and the global automotive industry alike. As the competition heats up, all eyes will be on how American automakers respond to this urgent challenge.
Stay tuned for more updates on this developing story as Ford and other American manufacturers strategize in response to China’s growing influence in the electric vehicle market.