Ford CEO: We Need To Learn From Chinese Automobiles Because They Pose A Threat

Ford CEO Jim Farley, known for his outspoken views on the auto industry, has finalized his strategy toward Chinese manufacturers that he finds both impressive and intimidating.

According to him, Ford will do everything to learn from Chinese companies with which it will cooperate in markets outside the US, while at the same time it will fight to prevent them from entering the domestic American market.

Farley confirmed to The Wall Street Journal that Ford intends to expand partnerships with Chinese manufacturers outside of America. “They are world leaders in many ways, whether it’s technology, cost or speed,” Farley said. That’s a strong statement for someone in his position, who has insight into the very top of the automotive industry.

His knowledge of the situation no doubt also influenced the statement he made just a few days earlier on Fox News, when he said that Chinese automakers would destroy the American auto industry if they were allowed to enter the market. “This is by no means a fair fight,” he said.

Chinese companies like BYD, Geely, Xiaomi and SAIC not only make cheaper cars; they make them faster, with more advanced software, better batteries and at prices that Western manufacturers often can’t match.

According to Farley, countries that have allowed Chinese cars into their markets “have seen their factories and jobs disappear”. This is where his new cooperation plan comes into play. “The most important moment is to have a plan before we accelerate, either with local production or imports from China. We are right at that moment,” he said.

In other words, Ford wants access to Chinese expertise abroad to buy time and avoid being run over by competitors at home. The logic of this strategy is clear, although the implementation details are not yet known. Ford already has significant operations in China, and partnerships with local companies could help it stay competitive in regions like Europe, South America, Southeast Asia and even Mexico, where Chinese manufacturers are making rapid progress.

If Farley’s plan succeeds, Ford will be better prepared to take on Chinese automakers that could one day sell vehicles in America.

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