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Ford CEO warns Chinese automakers could enter US in 5 to 10 years
Ford’s CEO said the company is planning for Chinese entrants even as the U.S. weighs a broader ban on Chinese car sales, with current tariffs on Chinese EVs around 100%.
Ford CEO Jim Farley told employees in a town hall that the company is preparing for the possibility that Chinese automakers could enter the U.S. market within the next five to 10 years, despite existing trade barriers, according to three people who viewed the meeting, Reuters reported. A Ford spokesperson declined to comment on the private employee discussions.
Farley emphasized that Ford is working on a family of affordable electric vehicles engineered to match the cost and efficiency of Chinese rivals, and said senior leaders believe Chinese companies are more likely to enter toward the latter part of the 5 to 10 year window.
The comments come as the U.S. Senate pushes to expand a ban on Chinese car sales. Reuters also noted Ford’s previous warnings about China being close to the U.S. auto market, while executives in the July 30 meeting were more specific about timing than before.
The report added that Chinese automakers have already gained significant market share in Mexico and, under a trade deal with Canada, can sell a limited number of EVs there, which auto experts view as a test market for U.S.-bound expansion. It said the U.S. currently blocks Chinese electric vehicles through tariffs of about 100%.