Will Ford be able to finally sell all its EV models lying around collecting dust now?
Jim Farley, CEO of Ford, has set his sights on the rapidly evolving Chinese EV market, which he views as both a threat and a valuable learning opportunity. With its cutting-edge technology, competitive pricing, and rapid innovation, China’s EV industry is gaining global attention, and Farley acknowledges that Ford must adapt to stay competitive.
Farley has consistently praised the capabilities of Chinese EVs, particularly Xiaomi’s SU7, which he believes offers “far superior” in-vehicle technology compared to many Western models. Farley is so invested in understanding this emerging market that he personally drives a Chinese EV for research purposes.
Moreover, this hands-on approach underscores his belief that mastering the Chinese EV landscape is vital for Ford’s future success. He pointed out that for years, the auto industry has talked about developing “smartphones on wheels,” or “software-defined vehicles,” cars that function more like consumer devices, with integrated digital features and regular software updates.
While Tesla has made strides in this direction, Farley argues that most automakers are still trying to catch up. Chinese manufacturers, however, have taken the concept of a “smart” vehicle to new heights, creating cars that blend technology with driving experiences in ways that American and European companies have yet to match.
Farley also notes that in the U.S., the technology in most cars is limited to basic features like media players, navigation systems, and adaptive cruise control. By contrast, Chinese vehicles push the boundaries of digital integration, offering advanced driver-assistance systems (ADAS) and seamless connections to the broader digital ecosystem.
On top of that, for Farley, the rapid progress of Chinese automakers represents an “existential threat” to Ford. He’s concerned that if Ford doesn’t learn from and respond to this shift, the company could lose market share. To better understand the competitive environment, Farley has made the strategic decision to immerse himself in the Chinese EV experience firsthand.
This has influenced Ford’s product strategy as well. Farley’s exposure to Chinese EVs has led him to reconsider Ford’s focus on larger electric SUVs, which have been a hallmark of the brand. Instead, he’s pushing the company to focus more on smaller, more affordable electric models, which are gaining popularity in China.
Farley’s approach signals a broader shift in the automotive industry, with more companies recognizing the growing influence of Chinese EV manufacturers. As CEO, Farley is leading Ford’s transformation through its Ford+ plan, which aims to position the company at the forefront of the digital and electric revolution. This includes developing vehicles that blend technology, software, and services to meet the evolving needs of today’s consumers.
