Ford Executives Surprised by Chinese EV Advancements

Chinese Automakers Outpacing Western Competitors

Just a few years ago, hardly any industry experts would have predicted that Chinese car manufacturers would be regularly producing some of the most advanced and compelling electric vehicles (EVs) on the market. However, recent developments have shown that China has caught up and even surpassed Western automakers. This realization came as a shock to Ford CEO Jim Farley and CFO John Lawler, who experienced the advancements firsthand during a test drive of a Changan Automobile electric SUV in China.

Ford’s Impressive Test Drive Experience

In early 2023, Farley and Lawler flew to China to test drive an electric SUV from Changan Automobile, a local firm with which Ford has a joint venture. Lawler expressed his astonishment to Farley, stating, “Jim, this is nothing like before. These guys are ahead of us.” Although the specific Changan model they drove was not mentioned, it left a lasting impression on both executives.

Tariffs Provide Some Protection

While Chinese-made EVs pose a threat to Western automakers, tariffs on these vehicles can offer some protection. Ford is aware of the advancements in China’s car industry but remains cautious in its expansion into the electric car market.

Ford’s EV Plans

Ford has plans to launch a $30,000 EV by 2027 to compete with Chinese alternatives. However, the company has scaled back some of its ambitious EV goals. It recently announced that going all-electric in Europe by 2030 is no longer feasible and will continue selling internal combustion engine (ICE), hybrid, and electric vehicles (EVs) in the market. Additionally, plans for a three-row electric SUV and a large electric truck have been delayed.

Conclusion

The rapid advancements in China’s EV industry have surprised Ford executives, highlighting the need for Western automakers to stay competitive. While tariffs provide some protection, Ford is proceeding cautiously in its expansion into the electric car market.