by Chinese Automakers as a Serious Threat
Many traditional automakers have long ignored the rapid development of the Chinese automotive sector. They believed that the changes that affected the technology industry would not impact car dealerships. However, this illusion has been dispelled, and now most large companies recognize the scale of the threat from Chinese brands.
Ford’s Position on Chinese Competitors
Ford CEO Jim Farley openly expresses the opinion that Chinese manufacturers have a significant advantage in electrification. He even regularly used the Xiaomi SU7 car, which indicates his admiration for competitors’ technologies. Farley believes that the threat from China surpasses even the Japanese auto industry of the 1980s.
I think it’s the same thing, but on steroids. They have enough capacity in China to satisfy the entire North American market and destroy us all. Japan didn’t have that. This is a completely different level of risk for our industry.
In 1980, Japan produced over 11 million cars, which forced then-President Ronald Reagan to impose import restrictions. Today the situation is different, but the anxiety remains similar. Chinese electric vehicles are not yet sold in the US, which protects local manufacturers, but Ford, as a global company, cannot rely on geographical protection.
China’s Technological Advantage
Chinese manufacturers have significantly better technologies for cars. For example, Huawei and Xiaomi are integrated into every car, allowing the driver’s digital life to be automatically displayed without the need to connect a phone.
We are participating in global competition with China, and this is not just about electric vehicles. If we lose, Ford will have no future. The Chinese are a powerful player in the electric vehicle industry that completely dominates the world stage.
Currently, regulations from the Trump era, including the cancellation of tax incentives for electric vehicles, have affected demand in the US. However, Farley believes this is a temporary phenomenon. He expects electric vehicles to occupy about 5% of the US market in the near future, but this figure will grow with the emergence of more affordable models and changing public perception of the technologies.
The modern automotive market is undergoing a period of transformation where technological innovations are becoming a key factor in competitiveness. Chinese companies demonstrate the ability to quickly adapt to global trends, forcing Western manufacturers to reconsider their strategies. Market conditions, such as the availability of raw materials for batteries and infrastructure development, also play an important role in this battle for leadership.
