Ford Motor CEO Jim Farley has issued a stark warning about the future of American carmakers, stating that legacy automakers like Ford risk falling behind—and potentially becoming obsolete—if they cannot keep pace with China’s rapid dominance in electric vehicle (EV) production and innovation.
“We’re in a global competition with China, and it’s not just EVs,” Farley said at the Aspen Ideas Festival on Friday. “If we lose this, we do not have a future Ford.” His remarks reflect growing concern within the U.S. auto industry over China’s increasingly competitive position in the global EV landscape.
Farley, who said he has visited China six or seven times over the past year, described what he witnessed as a sobering wake-up call. “It’s the most humbling thing I have ever seen,” he said. According to Farley, China currently produces 70% of the world’s EVs. He cited the example of Xiaomi’s YU7, a $35,000 electric SUV that reportedly garnered 200,000 orders shortly after launch, as a sign of the country’s rapidly advancing capabilities.
Farley pointed to several advantages Chinese automakers hold—not just scale and cost, but superior in-vehicle technology. “Huawei and Xiaomi are in every car. You get in, you don’t have to pair your phone. Automatically, your whole digital life is mirrored in the car,” he said. “Their cost, the quality of their vehicles is far superior to what I see in the West.”
Despite these concerns, Ford is recalibrating its EV strategy based on current market dynamics. Rather than accelerating EV output, the company is prioritizing hybrid models, which have seen rising consumer demand in North America. According to Business Insider, this strategic shift has boosted investor confidence, with Ford shares climbing over 9% so far this year.
Still, the long-term question looms: can a hybrid-centric strategy keep pace with the full-scale electrification led by China? For Farley, the urgency is clear, and he’s not waiting for a definitive answer—he’s already sounding the alarm.