Ford $F CEO Warns: Think Hard Before Opening the Door to Chinese Cars

Ford $F CEO Warns: Think Hard Before Opening the Door to Chinese Cars

Ford CEO Jim Farley warned the US needs to carefully weigh whether to let Chinese automakers into the American market, pointing to Europe as a "cautionary tale" — saying it's already "too late" there, after Chinese EVs rapidly seized market share and pressured local manufacturers. He made the comments Tuesday at the Automotive News Congress, calling for the US to be "very careful" about how Chinese automakers might enter.

That said, Ford isn't shutting the door on all cooperation — Farley noted the company is open to partnerships that boost investment efficiency or fill technology gaps, citing its deal with Chinese battery maker CATL to produce low-cost batteries in Michigan. He insists Ford can pursue partnerships with Chinese firms and compete directly against them at the same time. Ford has previously faced criticism over its China ties, including a deal with Geely to co-develop EVs for the European market, with the US government expressing concern such partnerships could deepen Ford's reliance on state-backed Chinese companies.

The backdrop: China is expected to export roughly 12 million vehicles this year, up from about 3 million in 2022. While the latest US-China talks produced no deal opening the market to Chinese EVs — and the US still maintains tariffs above 100% plus software restrictions targeting Chinese vehicles — many see Chinese automakers' US entry as increasingly a matter of "when," not "if." GlobalData projects Chinese brands' global market share will rise from 15% in 2021 to 24% in 2026, with exports potentially topping 10 million vehicles for the first time. Meanwhile, the US lags badly in EVs — just 6% market share versus China's 34% — pushing Ford and Stellantis to deepen Chinese tech partnerships even as automakers, unions, and US lawmakers resist, worried cheap Chinese cars could hurt domestic manufacturers and jobs.