Ford CEO Jim Farley admitted that witnessing China produce roughly 70 percent of the world’s electric vehicles is “the most humbling thing” he’s ever seen in the auto industry.
At a Glance
- China manufactures about 70 percent of all electric vehicles.
- Farley praised Xiaomi’s EV technology after six months driving its Speed Ultra 7 model.
- U.S. tech firms like Google and Apple have abandoned car-making ventures.
- Ford is canceling two electric-vehicle projects and investing nearly $2 billion in hybrids.
- The hybrid shift aims to shore up profitability while Ford closes its EV capability gap.
China’s EV Supremacy Revealed
After visiting Chinese factories six times in the past year, Farley told the Aspen Ideas Festival that “70 percent of all EVs in the world are made in China,” a feat he described as “jaw-dropping” when reported by Business Insider. He highlighted how manufacturers like BYD and tech giants such as Huawei and Xiaomi have integrated advanced driver-assist systems and over-the-air software updates more rapidly and at lower cost than Western rivals.
Farley said his own test drives of Xiaomi’s Speed Ultra 7 over the past six months convinced him of the quality and seamless digital experience Chinese EVs now offer—a benchmark he urged Ford to match if it hopes to remain competitive globally.
Watch a report: Ford CEO Admits China’s EVs Are Far Ahead
Implications for Ford and the U.S. Industry
Facing this gap, Ford announced it will cancel two electric-SUV programs, reallocating nearly $2 billion toward expanding its hybrid lineup, Yahoo Finance reports. Industry analysts argue that hybrids offer a bridge to profitability while the company retools its supply chains to secure lower-cost battery materials and closer partnerships with tech suppliers.
Farley warned that legacy automakers run the risk of ceding entire markets to Chinese brands unless they embrace faster software-centric development and vertical integration—an approach China mastered by controlling both battery production and component refinement domestically.
Ford’s Strategic Response
To close the technology divide, Ford is launching a new global technology division focused on software monetization, user-interface design, and artificial-intelligence-driven vehicle systems—areas where Chinese EVs currently lead in customer experience, according to a Reuters analysis. The company also plans joint ventures in emerging markets to tap into local supply chains and consumer insights, mirroring strategies used by Chinese automakers to expand overseas.
Farley remains optimistic, recalling how Ford’s Model T once revolutionized transportation through mass-production innovation. “We face a similar turning point today,” he said, “where rapid adaptation to a tech-centric world will determine which automakers survive.”
As China’s electric-vehicle footprint continues to expand, Detroit’s response will test whether American industry can reclaim its leadership in an era defined by digital integration and globalized manufacturing.
