Views: 0 Author: Site Editor Publish Time: 2025-08-05 Origin: Site
Jim Farley emphasized the critical need for industrial independence in the U.S., highlighting the country's heavy reliance on China for manufacturing components. He noted, "Many people don't realize how dependent we are on other countries for manufacturing. Without China, we couldn't obtain any high-performance magnets." These magnets are essential for audio systems, navigation, seat motors, windshield wipers, and door systems, and their unavailability led to Ford shutting down factories for three weeks.
Farley pointed out China’s massive production capacity, stating, "China’s domestic market sells 20 million vehicles annually, but it has a production capacity of 40 million vehicles, which it can export." This capacity could supply the entire North American market and parts of Europe, posing a significant challenge to Western automakers.
Farley shared that he visited China six or seven times in the past year to study the auto industry. He brought Ford’s executive team to test-drive around 100 new Chinese vehicle models, selecting four or five favorites to airlift to Detroit for further testing and disassembly.
He described Chinese electric vehicles (EVs) as technologically advanced, noting, "70% of the world’s electric vehicles are made in China. Their electric vehicle technology far surpasses ours." Features like Huawei and Xiaomi integration allow seamless phone mirroring, AI assistants akin to ChatGPT, facial recognition for personalized entertainment, and built-in payment systems set Chinese EVs apart.
Farley explained why Ford lacks similar features: "Google and Apple decided not to build their own cars." He admitted, "Their cars are better than ours in terms of quality and cost. The Western cars I've seen are indeed outperformed." This gap underscores the broader global competition, with Farley warning, "If we lose this, we have no future."
Farley highlighted opportunities from studying BYD, the global leader in EV sales. He noted their use of lithium iron phosphate (LFP) batteries, which offer longer lifespans, safety, and lower costs compared to traditional lithium batteries used in the West. Ford is now focusing on LFP technology, licensing it from China’s CATL for a new Michigan factory, despite political controversy.
Ford is pivoting toward smaller, cost-effective EVs to compete with Chinese manufacturers. Farley stated, "We have to start to get back in love with smaller vehicles. It’s super important for our society and for EV adoption." Ford’s “Skunkworks” team in California is developing a $30,000 EV platform to rival BYD’s cost-competitive models like the Seagull, priced under $10,000 in China.
Ford’s $3.5 billion investment in a Michigan LFP battery factory, set to begin production in 2026, aims to reduce costs and enhance safety. Vice President Lisa Drake emphasized the necessity of licensing CATL’s technology legally, stating, “This is simply a way to bring the technology back legally.” This move supports Ford’s goal of producing affordable EVs and energy storage solutions.
Farley advocated for partnerships, citing Ford’s collaboration with Jiangling Motors Co., Ltd. (JMC) in China to produce affordable EVs for global export. He noted, “They need us. We have strong sales channels, and our understanding of customers is something they lack.” Ford’s exports from China exceeded 50,000 units in the first half of 2023, reflecting a shift to “in China, for the world.”
Farley revealed Ford’s decision to prioritize “hands-free reading” mode for highways over Level 4 autonomous driving in urban settings. He explained, “Highways are challenging, but they're still less difficult than urban driving scenarios faced by Waymo or Tesla.” This technology aims to enhance safety and free up time for drivers.
Ford favors Waymo’s LiDAR-based autonomous driving system over Tesla’s camera-based approach, citing brand trust and safety. Farley stated, “We believe LiDAR is the key technology. Simply put, it's a system that combines LiDAR, not just cameras.”
Farley urged humility in learning from China’s advancements, saying, “We should be wary of demonizing China, treating them as opponents, enemies, or threats.” He emphasized mutual benefits through joint ventures, leveraging Ford’s 120 years of quality control experience to complement China’s technological edge.
Farley hinted at a transformative EV strategy reveal in August 2025 at Ford’s Louisville Assembly Plant, describing it as a “Model T moment” to compete globally with Chinese automakers like BYD and Geely. This involves reengineering supply chains and manufacturing processes to match China’s cost and quality advantages.
