Ford CEO Urges Action as Chinese EVs Speed Ahead with Technological Edge
1min read Ford's CEO recently visited China to assess the rapid advancements in the electric vehicle (EV) sector. Following his visit, he expressed concern that U.S. automakers, including Ford, are lagging behind their Chinese counterparts. The CEO observed that Chinese EV companies are advancing at what he described as "light speed."
During his visit, Ford's CEO reported to the company board that Chinese automakers have successfully integrated AI and other innovative technologies. According to him, such advancements are mostly absent in American offerings. The combination of efficient supply chains and advanced technology allows Chinese companies to offer competitive products at lower prices, effectively capturing international markets.
The overwhelming pace of development in the Chinese EV market has been driven by an extensive and robust supply chain, enabling BYD and others to keep production costs significantly lower. In a direct comparison, a Ford EV with a range of 515 kilometers is priced at over $39,900, whereas a BYD model offers a 610-kilometer range at a maximum price of $33,200, making it not only longer-range but also over $6,000 cheaper. Such disparities intensify the perceived competitiveness gap.
Reports indicated that, during a past visit to China, Ford's CEO and CFO were impressed by a test drive of an SUV produced by the state-owned Changan Automobile. The vehicle delivered a smooth ride and advanced technology, demonstrating the progress that Chinese manufacturers have achieved. This experience galvanized Ford leadership to prioritize meeting the "Chinese standard."
The Ford CEO even arranged for several Chinese EVs to be shipped to Michigan for executives to experience firsthand. His interaction with board members underscored the urgency of bridging the gap, framing the advancements as a direct threat to Ford’s market position.