Inside China Business Ford Motor CEO visits China, sees existential threats and opportunities, and overhauls the company
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Of all the legacy carmakers, Ford Motor Company is best positioned to survive the onslaught of Chinese auto brands. Ford dominates in pickup trucks and commercial vans, industry segments in which Chinese automakers are not yet competitive abroad. They are also the most profitable markets on a per unit basis. The high tariffs and import bans that are designed to keep Chinese models out of North America are of little help to Ford, but serve ironically as a lifeline to Japanese and European companies who exist only as long as the tariffs do.
But Jim Farley, the CEO of Ford Motor, nevertheless is making huge changes at Ford based on his recent experiences in China. In a new strategy, Ford will abandon entirely its ambitions to compete in China in the passenger vehicle markets, and everywhere else in electric vehicles made by Ford’s domestic factories. Instead, they will aggressively build new electric vehicle models in light and heavy trucks, designed by their engineers in the US, but produced and distributed by their Chinese joint venture partners.
Resources and links:
Kelly Blue Book, The 25 Best-Selling Cars of 2024 … So Far
Wall Street Journal, What Scared Ford’s CEO in China
Wall Street Journal, Ford Cuts Lightning Output in Latest Sign of EV Downshift
Wall Street Journal, A Chinese Phone Maker Did Something Apple Couldn’t: Make an EV
New Report: SUVs, Ford F-series, Toyotas are 2023’s bestselling cars in America
Americans Review The BYD Shark Plug-In Hybrid Pickup And Love It
Motor Trend, It’s No Mystery Why the F-150 Lightning EV Isn’t Selling Like Ford Hoped
Reuters, Changan Ford Motor to set up electric car JV with Chongqing Changan Auto
Investors Business Daily, Ford’s China Partner Makes Bold EV Move In World’s Top Auto Market
Closing scene, Gaoyi Mountain Scenic Area, Chenzhou, Hunan Province
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