Ford's CEO on EV Competition and Strategy
Ford’s CEO Jim Farley shared his experience of dismantling a Tesla Model 3 and Chinese EVs, expressing humility and highlighting the need for Ford to adapt.
Farley said he was “very humbled” after examining Tesla and Chinese electric vehicles for the first time.
Focus on Smaller and More Efficient EVs
Ford plans to pivot toward smaller, more affordable EVs that use fewer materials and batteries. The company aims to produce next-generation electric vehicles that are more efficient and technologically advanced than current models like the Mustang Mach-E and F-150 Lightning.
Farley noted that the Mach-E has approximately 1.6 km of electrical wiring, which contributed to the larger battery size.
Chinese EVs as an Existential Threat
Farley warned that Chinese EV manufacturers represent a significant threat to Western automakers. After testing a Xiaomi SU7 from Shanghai to Chicago, he mentioned the Chinese government’s active promotion of EVs, stating,
“EVs are exploding in China,” and the government has its “foot on the economic scale” to bolster electric vehicle production.
Summary
Ford recognizes the importance of EV innovation, plans to develop more efficient models, and faces challenges from China's aggressive EV market and government support for green transportation.