On July 30th local time, Reuters reported that Jim Farley, CEO of Ford Motor Company, told employees at a meeting on Thursday that despite the many trade barriers imposed by the United States on Chinese cars, the company is preparing for the possible entry of Chinese automakers into the U.S. market over the next five to ten years.
During the Q&A session, the Ford CEO and other executives further stated that Chinese companies are more likely to enter the U.S. market in the latter half of this time frame.
Reuters noted that Farley has always been one of the most outspoken American executives in the industry. He has repeatedly emphasized the competitiveness of Chinese auto giants like BYD in the industry, warning that Chinese competitors have already arrived at the “frontiers” of the United States. However, before this meeting on Thursday, Ford had never provided such a detailed schedule. A Ford spokesperson declined to comment on this matter.
Ford's executive chairman, Bill Ford, also discussed this topic earlier this month. The great-grandson of Henry Ford, the founder of Ford Motor Company, said during an event, "We must confront China head-on. We cannot expect to keep them out forever; we must be able to defeat them in areas where they excel."
According to US media, while Bill Ford made these remarks, the US Congress is advancing a bipartisan bill aimed at completely banning Chinese cars from entering the US market. Ford has expressed support for the bill. However, Bill Ford emphasized that US automakers must be prepared to deal with the possibility that Chinese automakers may find loopholes in the regulations.
The report indicates that Bill Ford’s remarks highlight the tension within the American automotive industry towards Chinese automakers such as Dongfeng and Geely. Over the past year, these companies have significantly increased their global exports and rapidly gained market share in key markets. The survey also shows that American consumers are becoming more interested in Chinese cars, especially given the scarcity of affordable electric vehicle options.
Although Ford has not yet competed with Chinese automakers in the United States, this is indeed the case in overseas markets. In order to revive sales in Europe, where competition is fierce, Ford recently announced the establishment of a joint venture with Geely. Although this collaboration has been criticized by some American lawmakers, Ford stated that competition from China in that region is making every automaker “more efficient and smarter,” and this is precisely the goal of the partnership with Geely.
According to data released by the China Passenger Vehicle Market Information Association in July, in June, manufacturers of new energy passenger vehicles exported 499,000 units, a year-on-year increase of 152.7% and a month-on-month increase of 17.6%. From January to June, manufacturers of new energy passenger vehicles exported a total of 2.231 million units, a year-on-year increase of 124.3%.
