Ford Chief Executive Officer Jim Farley said on Tuesday that Europe had let Chinese automakers in without taking its time and that “it’s too late” there, urging the United States to move carefully.
“I think it’s just important for us to take our time to be considerate,” Farley said at the Automotive News Congress in Detroit, according to a transcript of the session.
“I watch what’s happening in Europe right now, where that was not the case… And it’s too late,” he said. “The US must “be extremely careful around how the Chinese OEMs come to our country.”
Several Chinese automakers, including BYD, Geely, and Chery, are currently preparing to launch in Canada after Carney’s deal was signed last January, allowing sharply lower tariffs on China-made vehicles.
The US market remains effectively closed to Chinese vehicles through tariffs of more than 100% and Commerce Department rules that ban Chinese connected-vehicle software restrictions that can apply even to cars assembled in the United States if the manufacturer is Chinese-controlled.
Farley defended on Tuesday Ford’s partnerships with Chinese companies, which drew a letter this month from Transportation Secretary Sean Duffy accusing the company of “intertwining its future with Chinese state-backed enterprises.”
‘Stop the Drama’
“So our answer is pretty simple,” Farley said. “We’re going to partner with the Chinese where we don’t have IP, where we can be more capital efficient in places like Europe or Southeast Asia.”
“We’re also going to compete with them directly with UEV [Universal EV]. And both can be totally fine. They aren’t mutually exclusive,” Ford’s chief said before urging automakers to “stop the drama.”
“So stop the drama. Just get on, design good vehicles, great software, great experiences, great relationship with your dealers and suppliers… and we can compete,” he said.
Ford licenses battery technology from CATL for its plant in Marshall, Michigan.
“It’s our factory, our people in Marshall, Michigan. But it’s their IP… It’s better than importing batteries,” Farley said.
In July, Ford agreed to form a manufacturing joint venture with Geely at its plant in Valencia, Spain, in which Ford will hold 66% and Geely 34%.
From 2028 the plant is due to build a compact Bronco SUV, a Ford crossover jointly developed with Geely, and two Geely electric SUVs, alongside the Kuga.
Geely is also considering building its new off-road SUV there, Automotive News reported this month, citing people familiar with the matter, though neither company has confirmed the plan.
Ford plans to launch a midsize electric pickup on its Universal EV platform next year, the product Farley pointed to as its answer to Chinese competition.
11 Million Exports
“China will export 11 million vehicles this year, that’s larger than the entire production in the United States of cars,” Farley said. “It’s larger than all of European production. And they’re just starting, 11 million is just the beginning.”
Reuters separately put China’s vehicle exports on course for 12 million this year, up from 3 million in 2022.
Farley pointed to markets where Chinese-made cars have already taken a large share.
“25% of all vehicles sold in Mexico were sourced in China. This is not a theoretical thing,” he said.
In Australia, “25% of the market is Chinese… Chinese OEMs, on the way to 50,” he added.
In Europe, Chinese brands’ share went from virtually nothing in 2020 to 12% in August, according to Dataforce data cited by CNBC.
“Well, they have 100 car companies… Because none of them are making money,” Farley said of China’s industry, a generalisation that some of the largest groups contradict.
Geely, Ford’s partner in Spain, reported a 46% rise in first-half core profit attributable to shareholders to 9.68 billion yuan ($1.4 billion).
Subsidies and Security
“We need to be very careful and considerate. That’s what I’m willing to say today,” Farley said. “Our future of defense of our country, and our industrial base of our country, depends on how we feather this just right.”
“So we do not isolate the competition. But we also create a fair playing field. And we know they have large subsidies,” he added.
Ford’s CEO also cited the alleged data that Chinese vehicles can gather.
“These vehicles can drive themselves. They can take video of everything,” he said. “For your national security alone. It’s critical that we think about how do we find the right balance.”
“And we have to have a fair playing field. If we don’t have that, we will be regretful, I believe.”
Pressure From Washington
Duffy’s letter, dated September 3, cited Ford’s CATL licence, the Geely venture, talks with BYD on hybrid components and a plan to keep building the Lincoln Nautilus in China until 2030.
Ford called the letter “a wrongheaded attempt to capture headlines” in a company statement.
The US keeps Chinese vehicles out through tariffs above 100% and rules banning Chinese connected-vehicle software.
President Donald Trump said this month he might be “OK” letting Chinese automakers into the US if they built vehicles domestically.
US automakers urged Trump to keep Chinese brands out days before Chinese President Xi Jinping’s White House visit last week.
Republican Senator Bernie Moreno and Democratic Senator Elissa Slotkin have delayed a fast-track Senate vote on their bill to write a ban on Chinese vehicles into law, seeking to win over Senator Rand Paul.
A Shifting Line
Farley took a harder line on Fox & Friends on April 13.
“We should not let them into our country,” he said then. “There is no way this is a fair fight.”
Two days later he softened the message. “My point is not anything against anyone, it’s to be an advocate for a strong US auto industry,” he said on April 15, according to the Detroit Free Press.
“We value our Chinese partners, they help us stay sharp,” he told reporters, adding that Ford would “continue to expand these partnerships,” Bloomberg reported.
In the same month, he named BYD rather than Tesla as the benchmark for American carmakers, drawing a rebuttal from Tesla Chief Executive Officer Elon Musk.
At an employee town hall on July 30, Farley said Ford was preparing for Chinese automakers to enter the U.S. market in five to ten years, more likely toward the end of that range, Reuters reported, citing three people who viewed the meeting.
He has warned of the threat for years.
“They have enough capacity in China with existing factories to serve the entire North American market, put us all out of business,” he told CBS Sunday Morning in October 2025.
In September 2025 he called Chinese carmakers “the 700-pound gorilla” in EVs, adding that they benefit from “huge subsidies.”
