Ford’s CEO urges caution on Chinese automakers, says Europe is ‘too late’

FORD CEO Jim Farley said that the US must carefully weigh how and whether Chinese automakers should enter the American market, and pointed to Europe as a cautionary tale.

Farley said at an Automotive News conference on Tuesday (Sep 29) that the US must “be extremely careful around how the Chinese OEMs come to our country,” and cited the pressure on Europe’s auto industry as Chinese imports quickly grab market share there.

For European countries, “it’s too late,” he said.

Farley said Ford will partner with Chinese companies when the situation is capital-efficient and in areas where the automaker lacks expertise. Ford, for example, partners with Chinese battery maker CATL to make lower-cost batteries at a Michigan plant.

“We’re also going to compete with them directly,” he said. “They aren’t mutually exclusive.”

Ford has taken criticism over the past few years for partnering with Chinese firms on vehicle and battery technology, including a deal announced in July to jointly develop electric cars with China’s Geely for the European market.

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This month, Transportation Secretary Sean Duffy in a letter to Farley expressed concern that Ford’s deals with Chinese companies left the Michigan automaker “intertwining its future with Chinese state-backed enterprises.”

The rapid rise of China’s auto industry as an export powerhouse has rattled auto executives from Japan and Germany to the US. China is projected to export around 12 million cars this year — to Europe, Latin America and elsewhere — up from around 3 million in 2022.

The US so far is effectively sealed off from Chinese cars through a ban on Chinese-made vehicle software and tariffs that exceed 100 per cent. Still, auto executives worry that that will not hold long-term, and lobbyists for automakers, dealers and parts suppliers have pressed US lawmakers for a permanent ban. REUTERS