"Ford's CEO Warns: 'Our Defeat to China Means No More Ford'"
In a shift towards a more interconnected world, cars are becoming an integral part of people's digital lives, and this transformation is not lost on Ford CEO Jim Farley. Farley's concerns about the evolving landscape of the automotive industry are evident, particularly as he watches China, a major player in the global car market, make significant strides.
Ford is taking steps to understand this changing landscape, sending selected cars from China to Detroit for thorough testing and disassembly. Farley himself is immersing himself in the Chinese market, focusing on product learning by driving and analyzing recently launched cars there.
Farley's perspective, as the head of a major global automaker, carries weight. He has made multiple trips to China over the past 12 years and finds it to be the most humbling experience. He emphasizes the need for humility in approaching business deals with China, stating that they have valuable knowledge to share.
The competition between the West and China, according to Farley, is not limited to Electric Vehicles (EVs); the future of Ford is at stake. He believes that China has Intellectual Property (IP) that Ford needs and that cooperation is beneficial for both parties.
This competition is not unique to Ford. Numerous global automakers currently operate or have announced joint ventures with Chinese manufacturers to boost technological development and competitiveness. Companies like BMW, Ford, General Motors, Honda, Mercedes-Benz, Renault, Toyota, Volkswagen, and others have partnered with Chinese manufacturers.
Farley warns that if western carmakers don't take China seriously, long-standing companies may cease to exist. He urges humility and cooperation with China in the automotive industry. He also warns against demonizing China as a competitor, implying that cooperation is necessary.
One area where Chinese vehicles seem to have an edge over Ford's offerings is seamless phone connectivity. This advantage is due, in part, to the integration of companies like Huawei and Xiaomi into Chinese vehicles, allowing for phone connectivity without the need for pairing. This is a feature that Ford currently lacks due to Google and Apple's decision not to enter the car business.
Ford is open to setting up joint ventures (JVs) in China, provided the right safeguards are in place. The company recognizes the need to improve its quality in various countries, a skill it has developed over 120 years.
Reported by Chris Thompson.
