Ford Motor CEO Jim Farley was among the OEMs leaders invited to speak at the Alliance Bernstein 38th Annual Strategic Decisions Conference on Wednesday. Farley commented Ford’s Chinese rivals saying that they “will become more important” and that they are “incredibly undervalued”.
“I would say new EV companies probably will get simpler. And Chinese [firms] will become more important.” he started to say.
Ford CEO enhanced the capability of those EV manufacturers to produce entry level vehicles saying he expects “a shakeout” when they expand to other markets after entering Norway in late 2021.
“The China EV makers … if you look at $25,000 bill material for an EV in China, it’s probably the best in the world. And I think they are incredibly undervalued. And they haven’t had or shown any interest in exporting other than Norway … there is a shakeout coming. And I feel like that is going to favor many of the new Chinese players,” Farley concluded.
XPeng was the first Chinese EV maker to enter the European market in mid 2021 through Norway, the country with the highest EV market share in the world. NIO followed a couple months later and it is expectable for both manufacturers to deliver the first units in Sweden, The Netherlands and Denmark before the year end.