Ford CEO Declares China the ‘700-Pound Gorilla’ in EV Market
UPDATE: Ford CEO Jim Farley has just declared that China is “completely dominating” the electric vehicle (EV) market, leaving American automakers like Tesla, GM, and Ford in the dust. In a striking statement on October 23, 2023, during an episode of The Verge’s “Decoder” podcast, Farley emphasized the overwhelming competitive edge that Chinese automakers hold, saying, “The Chinese are the 700-pound gorilla in the EV industry.”
Farley attributed this dominance to the substantial government support that Chinese manufacturers receive, which allows them to innovate rapidly and keep costs low. “There’s no real competition from Tesla, GM, or Ford with what we’ve seen from China,” he noted. The implications of these comments are significant, as the global EV landscape shifts dramatically in favor of Chinese brands.
The Ford CEO highlighted the multitude of companies in China, such as BYD, Geely, Nio, and Xiaomi, many of which are newly entering the automotive sector. He pointed out that these companies benefit from extensive local government subsidies, which have fueled their rapid growth. “It’s great innovation at a very low cost,” Farley stated.
In previous remarks, including a June 2023 panel discussion at the Aspen Ideas Festival, Farley described China’s EV progress as the “most humbling thing” he has ever witnessed. He praised the advanced in-vehicle technology created by Chinese firms, which often allows seamless integration with users’ digital lives without the need for phone pairing. “You get in, and your whole digital life is mirrored in the car,” he explained.
Farley is not the only industry leader acknowledging China’s lead in EVs. The Centre for Strategic & International Studies reported that the Chinese government has invested at least $230 billion in local EV makers from 2009 to 2023, highlighting the scale of support behind the industry’s growth.
In a recent episode of “The Fully Charged Podcast,” Farley praised Xiaomi’s new electric vehicle, the SU7, sharing, “I flew one from Shanghai to Chicago, and I’ve been driving it for six months now, and I don’t want to give it up.” His personal endorsement underscores the competitive pressure American automakers face as they grapple with China’s rapid advancements.
The stakes are high for Ford and other U.S. manufacturers, with Farley warning, “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.” As the EV race intensifies, the need for American companies to innovate and adapt is more pressing than ever.
As this story develops, industry watchers will be keenly observing how Ford and its competitors respond to this unprecedented challenge posed by Chinese automakers. The future of the EV industry hinges on their next moves.
