Ford CEO Jim Farley has made it clear from past comments that he views companies like Tesla and Rivian as major threats to the automaker’s EV business, though he also feels like the 100+ year-old automaker has some clear advantages over those newer rivals, too. However, in China, a number of upstart EV automakers have managed to get a leg up on their U.S. counterparts with a host of all-electric offerings, some of which are selling for very affordable prices as well. While speaking on Ford’s Q2 earnings call recently, Jim Farley also expressed that he believes those Chinese EV makers will one day wind up competing in the American market as well.
“I’m not going to get into details, but we think we have a way out of that tension point or conundrum,” Farley said when addressing a question regarding dealer margins. “On overall how I see dealer margins, as we talk to our dealers and roll up our sleeves is we need – because I said our competitors are pure play EVs and the Chinese that are absolutely coming. And that means we have to get this $2,000 out of our distribution cost to be competitive with them.”
In addition to Farley’s comments about Chinese EV companies, his remark regarding “pure play EVs” alludes to companies like Rivian, Tesla, and Lucid, which only offer all-electric vehicles in their respective lineups.
This threat of increasing competition from non-traditional sources is part of what’s driving Farley’s goals of reinventing the automaker’s dealer experience, boosting both service and the post-purchase experience, which will be the focus of the company’s marketing efforts moving forward. Regardless, Farley also previously stated that he believes the upcoming EV pivot will lead to tremendous consolidation within the automotive industry as well, with at least some startups eventually being bought out by other, more established companies.
We’ll have more on the future of the automotive industry soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.
Comments
The Chinese have considered breaking into the US market for more than a decade. Case in point, they hired Steve Saleen to head up Cherry Auto in the US a dozen years ago. Their cars then couldn’t comply with all the US safety and emissions standards. EVs may not need emissions certification, but safety is still a make or brake. Our government would be crazy to let them sell here. All forgiven brands built in China have the plant half owned in a round about way, by the communist government. So why should we allow them unfettered access to our markets?
Farley is clueless. He is not listening to Americans, he just wants our tax money. He needs to focus on quality which is severely lacking at Ford under him. His attemp at forcing EVs onto Americans is failing spectacularly. He is not even in the same league as Musk or Tesla.
Why would we let an enemy state into the North American market? I’m Canadian and as far as I’m concerned Xi and his thugs can stay on his side of the Pacific. We should not be funding his expansionist desires. China is not our friend!
I fully concur!
You can thank Ford, along with the rest of the international automakers, for the Chinese invading North America with EV vehicles. Where do you think they got the technology to make EVs? And now Farley is crying about it? The Chinese are beating us at our own game, because they do not play by the rules, the CCP gives the EV companies the technology that they stole, and free financing and land to build them, and they do not have the regs that we have here in that industry, like environmental, safety, etc., and we are all going to be sorry for it one day.
And Farley is raising the issue now, because the Chinese are a threat to his precious EV company and plans, and predictions, probably hoping that Washington is listening, and will help him out by trying to restrict Chinese EVs imported into the US. Too little too late.
China should not be allowed to sell any of their vehicles in America. With shoddy Chinese workmanship, their cars cannot be trusted. Besides, are American cars sold in China? No American cars are sold in Japan or Germany, yet we allow them to sell their cars here. No way should that be allowed.