Ford Shakes Up EV Strategy After CEO’s Trial Run With Chinese Electric Vehicle
After Ford CEO Jim Farley’s recent six-month trial run of driving competitor Xiaomi’s SU7 electric sedan, the automaker has been shaken into reinventing its EV strategy, according to The Street.
In 2023, Farley and Ford CFO John Lawler visited Ford's partner in China, Changan Automotive, to test drive an electric SUV produced by the company. What followed was shock and awe.
“Jim, this is nothing like before,” Lawler had said to Farley after their ride. “These guys are ahead of us.”
Fast-forward to today: six months after Farley had an EV from consumer electronics brand Xiaomi shipped from Shanghai to Chicago for research and development purposes, he isn’t ready to let it go.
“I don’t like talking about the competition so much, but I drive the Xiaomi,” Farley said recently on the Fully Charged Show podcast. “I’ve been driving it for six months now, and I don’t want to give it up.”
The experience has prompted some reflection on Ford’s strategy for EVs, with Farley admitting the company has dismissed the value of Chinese brands, until now. He now sees a glaring difference between the Chinese and American auto industries; namely, how involved tech companies like Huawei and Xiaomi are with vehicle production.
After discussion with Chairman Bill Ford, the automaker is attempting to completely reimagine its approach to EVs with the formation of a ‘Skunk Works” team based in California.
Comprised of individuals selected from Tesla, Rivian, Lucid, and Apple, the aim of the group is to bring a complete new set of eyes to the table, operating separately from Ford's Dearborn HQ.
“My [Ford] badge doesn't even work there; I can't even get in the building. That's how extreme [...] of a different approach we needed to compete against BYD because the traditional industrial company [...] are just adopting Chinese platforms.”
