Chinese EV makers are an existential threat to Western auto giants, Ford CEO tells .

Ford CEO Jim Farley has raised alarms over the rapid growth of Chinese electric vehicle (EV) manufacturers, labeling them an “existential threat” to the global automotive industry. His concerns follow a recent trip to China, where he witnessed firsthand the advancements made by local EV producers.

A Familiar Pattern: The Rise of Asian Automakers

Farley likened the current situation to the emergence of Japanese automakers like Toyota and Honda in the 1980s, which initially introduced affordable, reliable cars that gradually dominated the U.S. market. Similarly, Korean brands such as Hyundai and Kia have successfully repositioned themselves in the EV sector.

Ford’s Strategic Response

In response to this growing competition, Ford is forming a “skunkworks team” focused on developing an affordable EV platform to rival Chinese and Tesla offerings. The company plans to launch its electric Puma small crossover in the European market.

Global Measures Against Chinese Competition

Governments worldwide are reacting to the Chinese EV challenge by imposing tariffs. The Biden administration has announced a 100 percent tariff on Chinese EVs starting September 27, 2024, while the EU is preparing to vote on tariffs ranging from 17 to 36.3 percent on major Chinese brands like SAIC and BYD.

As competition intensifies, the future of the global EV market hinges on how established brands like Ford adapt to this looming challenge from Chinese manufacturers.

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