Ford CEO Jim Farley's fascinating 'take' on taking on Chinese car companies...

[climateguy]

The "Everything Electric" show on Youtube has an interesting interview with Ford CEO Jim Farley. Ford CEO Jim Farley's fascinating 'take' on taking on Chinese car companies...

The same interview is also available as a podcast on the "Fully Charged" podcast: "Can Lightning Strike Twice? With Jim Farley – The Man Behind The Best Selling Truck In 50 Years"

Farley surprised me. He seemed honest about the position Ford and all other automakers in the world are now in, compared to Chinese EV production. Eg.: he described at one point how he was driving a Chinese EV for a number of months, and he said: "I don't want to give it up". Etc.

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[Grumpy2]

Thanks for the link. Farley does indeed understand the tsunami that is coming, and how difficult it will be for American car makers.

 

[MountainAlive]

For now it seems the only thing the west (Europe, North America) can and has done is to ban the sales of these Chinese EVs. But if china can make these for pennies on the dollar compared to western countries (with labor unions, fair wages, health Insurance, strict road safety regulations, etc.) then I’m not sure how this is going to play out. This feels like one of those film to digital transitions that killed mighty companies like Polaroid, etc. The existing legacy auto makers must know this is coming and unless they are prepared they will be wiped out eventually.

 

[climateguy]

But if China can make these for pennies on the dollar compared to western countries (with labor unions, fair wages, health Insurance, strict road safety regulations, etc.) then I’m not sure how this is going to play out. This feels like one of those film to digital transitions that killed mighty companies like Polaroid, etc. The existing legacy auto makers must know this is coming and unless they are prepared they will be wiped out eventually.

Farley said in the interview that Ford's studies of Chinese designs showed there are areas of the designs where Ford has better ideas and presumably more expertise. He pointed to batteries, saying this is where the Chinese are very far ahead. He compared present battery technology as a Model T now compared to todays ICE vehicles.

He's said in other interviews that the high tariffs that were recently imposed by the US on Chinese EVs are seen by Ford as a temporary measure to give US firms some time to catch up if they can.

The US is still the most prolific innovator in the world. Obviously, the US has a problem unleashing this power in the EV area. One of the two major political parties (and presumably their supporters) accepts as an article of faith that climate change is a hoax and consequently electrification of the transport sector is not necessary. The US is unique among industrialized countries in this respect.

Farley said Bill Ford sees eye to eye with him that this challenge China presents is similar to the time Japanese manufacturers came from nowhere to taking their present huge slice of the US auto market. He sounded determined and sincere that Ford is taking Chinese EV dominance as an existential challenge.

 

[MaintGrl]

While this may be all true and correct . . Please correct me if I'm wrong, aren't the Chinese EV's heavily subsidized in china, and I don't believe the workers are treated very well either.

 

[Grumpy2]

True, the Chinese got way ahead of the rest of the world on electrify transportation because their dictator could do it without convincing millions it was the right thing to do.

The USA has been the largest oil producing nation in the world for the past 6 years, and we aren't going to make any sudden changes. I believe in science and I believe it would be best for all to release the barriers to the Chinese cars, and let the OEMs adjust, or fail.

I get a sense of Farley's comments that even he knows that....

 

[Pioneer74]

china can make these for pennies on the dollar

Government subsidies and slave labor will do that for you.

 

[rockhead]

Looking at one astonishingly inexpensive chinese ev the BYD Seagull I had two thoughts, nice looking car, unfortunate name, the car shits on itself !
The Canadian government is slamming them with a massive tariff to ensure the industry here can get off the ground, I am fine with that.

 

[climateguy]

While this may be all true and correct . . Please correct me if I'm wrong, aren't the Chinese EV's heavily subsidized in china, and I don't believe the workers are treated very well either.

Bloomberg published "China’s EV Makers Got $231 Billion Aid Over 15 Years, Study Says". That article cited a Center for Strategic & International Studies (CSIS) report: "The Chinese EV Dilemma: Subsidized Yet Striking".

The CSIS report started with this: "Chinese EVs have benefitted from massive industrial policy support, and their quality is improving, making them attractive to domestic and overseas consumers. An effective response by the U.S., Europe and others must take account of both facts."

The advantage due to poorer conditions for the workers could be addressed by US import regulation, if the US was more unified as to whether it wants to produce EVs in the coming years. We've outsourced industry after industry fairly willingly so far.

 

[srspring551]

Although we like to say "it's not our fault" and the Chinese are using unfair trade practices, the truth is that it's mostly our fault. Read this eye-opening article to see how we have failed to keep up (and not just with solar panel production).
https://www.bloomberg.com/graphics/2024-opinion-how-US-lost-solar-power-race-to-China/

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