Ford CEO Said Chinese Automakers Represent An "Existential Threat"

American automakers have largely ignored Chinese vehicles, as they’ve traditionally been viewed as knockoffs of existing models, but that attitude is shifting – hard. Following a recent trip to China, which involved driving locally-produced vehicles, Ford CEO Jim Farley shared his thoughts, expressing concern that Chinese automakers have progressed into an “existential threat.”

Farley and Ford CFO John Lawler spoke after the drive, with Lawler noting that “these guys are ahead of us.” The CEO also said that the rise is similar to the trajectories taken by Toyota and Honda in the 1980s and 1990s and compared Chinese companies’ progress to that of Hyundai and Kia.

While it has struggled with the profitability of its new electric models, Ford is readying a more affordable EV and will launch the small Puma electric crossover in global markets. Ford delayed a three-row electric SUV before canceling the project last month, and the automaker is delaying an F-150 Lightning refresh to cut costs.

Farley’s thoughts are grounded in reality, though Chinese automakers will have a steep hill to climb to sell EVs in the United States. Recent tariff changes could mean extreme costs for companies wanting to sell here, and the U.S. government has so far had a heavy hand in its efforts to improve data privacy and security. Globally, however, Chinese automakers are on the rise, so it’s a wise decision to shore up product offerings before things get too far out of hand.

[Images: Ford]

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