During an interview on CNN’s ‘Fareed Zakaria GPS’ Sunday program, Ford Motor’s Executive Chairman, Bill Ford, acknowledged that the United States is currently unprepared to compete with China in the electric vehicle (EV) production sector. Bill Ford highlighted China’s rapid development and large-scale EV manufacturing, emphasizing their ability to export these vehicles globally. He further mentioned the need for the US to be ready for Chinese EVs to enter the American market.
In February, Ford announced a $3.5 billion investment to establish an electric vehicle battery plant in Michigan. The deal involved utilizing technology from Chinese battery company CATL (Contemporary Amperex Technology Co. Ltd.), which attracted the attention of US Senator Marco Rubio. Senator Rubio urged the Biden administration to review the agreement.
Bill Ford explained that the Michigan battery plant provides an opportunity for Ford engineers to learn the technology and eventually incorporate it into their own EVs. He clarified that the facility is solely owned by Ford, with the employees being their own workforce, and the arrangement involving licensing the technology from CATL.
I think we see the Chinese as the main competitor, not GM (GM.N) or Toyota (7203.T). The Chinese are going to be the powerhouse,
Jim Farley CEO Of Ford
Ford CEO Jim Farley had previously identified Chinese electric vehicle manufacturers as the primary rivals in the EV sector, emphasizing the need for Ford to establish distinctive branding or achieve lower costs to compete with Chinese automakers. He expressed the view that China will become a dominant force in the industry, surpassing competitors such as GM and Toyota.
The remarks from Ford’s leadership underscore the significance of China’s advancements in the EV market and the need for the US to bolster its capabilities and competitiveness in this rapidly evolving industry.
