Ford chairman can’t hide his face: US can’t (yet) compete with China on electric cars – Business AM

The US is still far behind China in the race to produce electric vehicles, despite Tesla’s progress. A reason for Ford to partner with a Chinese company to take advantage of their technologies…

In the news : Bill Ford, chairman of Ford, told CNN that the US is “not yet ready” to compete with China in the production of electric cars.

• “The (Chinese producers, editor’s note) have grown very fast, on a large scale, and now they are exporting. They are not here, but they will come here, we think, sooner or later, and we must be ready and we are getting ready“, he indicated.
• It is hard to prove him wrong about China, which is transforming the global auto industry by becoming the second largest exporter of cars, behind Germany.
• It owes this performance to a surge in Chinese exports, which have tripled since 2020 and reached more than 2.5 million vehicles last year, it notes. Bloomberg.
• In Europe last year, every fifth electric car sold came from China.
  • This is also proven by BYD’s penetration into our European and even Belgian countries.
  • In an analysis, the credit insurance company Allianz Trade talks about a “redefinition of the automotive industry”. ” Soon all cars will come from China, whether produced by a Chinese brand or by an American or European brand, made in China. They meet all European requirements. Europe will massively switch to Chinese-made cars over the next few years,” predicts Johan Geeroms, director at Allianz Trade.

A partnership with a Chinese company

On the sideline : Ford itself is relying on Chinese expertise to boost its transition to electric cars.

• The American manufacturer has announced that it will invest $3.5 billion in an electric vehicle battery factory on American soil that will operate with technology and support from Chinese company Contemporary Amperex Technology.
• A controversial decision as the US strives to cut ties with China, particularly in automotive technologies.
• US Transportation Secretary Pete Buttigieg added an extra layer by saying on Sunday that the US must take steps to reduce China’s advantages in electric vehicle batteries, according to an interview with Reuters. Bloomberg Television.
• But the great-grandson of founder Henry Ford defends himself by seeing in his Chinese partnership an opportunity for Ford engineers to understand the technology.
  • “All we do is license the technology,” he said. “It is really important that our engineers get this knowledge so that we can ultimately do it ourselves. »

Looking back : In May, Ford CEO Jim Farley pointed out that Chinese electric vehicle manufacturers were its main competitors in this area. He admitted that Ford would either have to do better than these Chinese automakers develop a distinctive brandor reduce costs.

• So defending yourself from a partnership with China by claiming to rely on foreign innovation rather than developing your own ideas and skills may not be the right strategy…
• And it’s not the first time Ford has teamed up with a Chinese company: In April, a $4.5 billion partnership with a Chinese mining company in Indonesia had already sunk a lot of money.