Asger Risom
Ford’s top executive has accused Chinese electric vehicle manufacturers of “cheating” their way to global dominance — and says U.S. companies are now at a critical disadvantage.
Ford’s top executive has accused Chinese electric vehicle manufacturers of “cheating” their way to global dominance — and says U.S. companies are now at a critical disadvantage.
A Growing Imbalance in Global EVs
Jim Farley, CEO of Ford, says competition in the EV market is becoming one-sided. In his view, American firms can’t keep up with the scale and speed of Chinese manufacturers.
“No Real Competition Left”
Speaking on the Decoder podcast, Farley claimed there’s “no real competition” from Tesla, GM, or Ford compared to what’s emerging from China — both domestically and globally.
China’s Low-Cost, High-Speed Strategy
Farley credits China’s rapid EV expansion to its innovation capabilities and ultra-low production costs, giving local companies a strong edge over Western rivals.
Massive State Subsidies at Play
According to Farley, hundreds of Chinese EV firms are supported by their local governments. Subsidies and incentives have allowed brands like BYD, Geely, and Nio to scale rapidly.
“They Have a Big Advantage”
Farley argues that U.S. automakers are playing on an uneven field. He says China’s backing amounts to a competitive advantage the West hasn’t matched.
A Different Kind of Support Wanted
While not asking for consumer subsidies, Farley says U.S. firms need deeper support in battery tax credits and IP transfer — key to building a more competitive EV infrastructure.
High-Tech Interiors Are Another Edge
Farley highlighted how Chinese EVs offer advanced digital features. Brands like Huawei and Xiaomi are deeply integrated into vehicle systems, offering seamless user experiences.
Xiaomi EVs Impress Even Ford’s Chief
Farley revealed he’s personally driven a Xiaomi SU7 electric car for six months, calling it hard to give up. He imported the car himself from Shanghai to Chicago.
$230 Billion in State Aid
Analysts estimate China’s state support for its EV sector exceeded $230 billion between 2009 and 2023 — helping build a globally dominant industry from scratch.
Western Tariffs Strike Back
In response, the U.S. and EU have imposed tariffs on Chinese EVs, citing unfair competition due to government subsidies. It’s a growing point of geopolitical tension.
The Tech Gap Is Closing — Fast
Farley warns that if Western firms don’t adapt, they risk falling further behind. Chinese firms are now exporting EVs that rival — or surpass — Western tech on price and performance.
This article is made and published by Asger Risom, which may have used AI in the preparation
