Ford CEO Reveals “Shocking” Findings from Competitor Vehicle Tear-Downs
Jim Farley, CEO of Ford, shared a surprising insight gained from analyzing rival electric vehicles that led to a significant business decision. Farley emphasized the company's determination to compete with both Tesla and emerging Chinese EV manufacturers.
Unexpected Wiring Length Disparity
During the standard industry practice of dismantling competitor cars, Ford discovered that its Mustang Mach-E contained approximately 1.6 kilometers (nearly a mile) more wiring than the Tesla Model 3. This observation highlighted potential inefficiencies in Ford’s electric vehicle design.
Surprise from Chinese Competitors' Vehicles
Farley noted a similar shock while examining vehicles from Chinese manufacturers. The findings were humbling and prompted Ford to re-evaluate its approach to EV production.
“I was very humbled when we took apart the first Model 3 Tesla and started to take apart the Chinese vehicles. When we took them apart, it was shocking what we found,” Farley said on an upcoming episode of the Office Hours: Business Edition podcast.
Strategic Response to Findings
Motivated by these discoveries, Ford took action to enhance its electric vehicle competitiveness. In 2022, Farley initiated the creation of a new division named Model E focused on advancing Ford’s EV innovation efforts.
“I'm not going to just cede that to the Chinese,” Farley stated regarding the electric vehicle market.
Background on Ford’s Innovation Challenges
- Ford, known for revolutionizing the auto industry with the Model T in 1908, has faced hardships competing with faster-moving EV innovators.
- The emergence of Chinese automakers at the forefront of EV technology has intensified competitive pressure.
Reporter Information
Marco Quiroz-Gutierrez reports on general business news for Fortune.