According to reports, Ford Motor has discussed forming a joint venture in the U.S. with Xiaomi, BYD, and others to introduce Chinese technology as a response to transformation pressures. Ford CEO Farley has expressed strong admiration for Chinese electric vehicles. The company is currently facing challenges of product gaps and stalled transformation.
According to a report by the Financial Times on the 1st, $Ford Motor (F.US)$ held negotiations with Chinese electric vehicle manufacturer $XIAOMI-W (01810.HK)$ regarding cooperation matters, exploring the establishment of a joint venture in the United States to manufacture electric vehicles. This potential deal would open a pathway for Chinese automakers to enter the U.S. market.
The report cited four informed sources stating that although discussions were at an early stage, Ford Motor had explored the possibility of forming a joint venture with Xiaomi Group to produce electric vehicles in the U.S. Ford has also engaged in discussions with BYD and other Chinese automakers regarding potential cooperation in the U.S.
Ford denied this, stating, "This report is entirely incorrect and lacks any truth." Xiaomi did not respond to requests for comment, while BYD declined to comment.
Farley's Strong Support for Chinese Electric Vehicles
Jim Farley, CEO of Ford Motor, is a staunch advocate of Chinese electric vehicles, having imported a Xiaomi SU7 model for his personal use.
Earlier this month, Farley hosted Trump at a Ford truck plant in Dearborn, a suburb of Detroit. During the visit, Trump told business leaders that if Chinese companies "are willing to come here to build factories and hire you and your friends,
Ed Kim, president of consulting firm AutoPacific, stated that Ford Motor is particularly vulnerable to the challenge posed by Chinese electric vehicles entering the U.S. market, as the company has previously discontinued several models in key mass-market segments in anticipation of transitioning to electric vehicles. However, this transition process has now stalled.
Analysts believe that these models include the discontinued compact crossover Ford Escape and midsize SUV Ford Edge. Ford will not have replacement models for them until at least 2027, when the company plans to launch a new low-cost electric vehicle platform.
Editor/Jeffy