Ford Motor Co. (NYSE: F | F Price Prediction) CEO Jim Farley told a group at the Aspen Ideas Festival that China’s electric vehicles EVs are “far superior” to U.S. EVs. And after driving them, he said, “it is the most humbling thing I have ever seen.” He added that he worried about China’s EV competition. According to Yahoo, he told the same group, “70% of all EVs in the world, electric vehicles, are made in China.” He had recently tested some of China’s EV products. His comments show how much Chinese EVs threaten Ford’s future, which is already shaky.
Ford’s EV Troubles
Ford has little to show for its own EV investment, which it said would come close to $30 billion. It also said it would build hundreds of thousands of EVs as of last year. Its U.S. EV sales in May were only 6,723, down 25% from the same month last year. Sales of its F-150 Lightning, its EV flagship, were only 1,902, down 41.7% year over year.
China is the world’s largest EV market by far. Ford has no EV presence there, selling just one EV in China during May.
Ford does not have an EV presence in most of the world’s largest car markets, which are being conquered by the Chinese, led by BYD, the largest EV company in the world. After the United States and Japan, the largest car markets in the world are India, Germany, and Brazil. BYD recently sent thousands of EVs to the South American country.
The only thing that has kept China EVs out of the U.S. is 100% tariffs. It is impossible to say how long they will be in place. The disappearance of these tariffs would decimate Ford and GM, along with foreign car companies with large U.S. sales.
China EVs have several advantages. They are high quality, advanced technology, and, in some cases, price points below $20,000.
Farley has every reason to think China could sink Ford.
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