Ford's Commitment to Electric Vehicles
Ford CEO Jim Farley acknowledged feeling humbled after examining the first Tesla and several Chinese electric vehicles (EVs). He realized that to remain competitive worldwide, Ford cannot abandon EVs and is gearing up for significant changes.
Insights From Reviewing Competitors
During an episode of the Office Hours: Business Edition podcast, Farley described the experience of dissecting a Tesla Model 3 and various Chinese EVs as “very humbling.” This eye-opening moment compelled Ford to revamp its EV strategy.
New Focus on Smaller, Affordable EVs
Ford is now prioritizing smaller EV models that use smaller batteries and fewer raw materials. The company aims for its next-generation electric vehicles to be much more efficient and technologically advanced than the current Mustang Mach-E and F-150 Lightning.
Technical Challenges and Innovations
Farley explained the Mustang Mach-E’s reliance on about 1.6 kilometers of wiring, which contributed to a larger battery size. This highlights Ford’s intention to streamline design for improved efficiency.
Concerns About Chinese Competition
The CEO has repeatedly warned that Chinese EV manufacturers represent an “existential threat” to Western automotive brands, including Ford.
Having flown a Xiaomi SU7 from Shanghai to Chicago and tested it extensively, Farley expressed admiration, saying he was reluctant to return the vehicle.
“EVs are exploding in China,” Farley said, emphasizing that the Chinese government actively supports the electric vehicle market by keeping "its foot on the economic scale."
Author’s summary: Ford’s CEO accepts that to compete globally, the company must intensify its focus on efficient, affordable EVs amid rising competitive pressure from China’s aggressively supported electric vehicle industry.