Ford CEO Jim Farley Envisions Beating Chinese EVs In 'A Street Fight,' Wants A Level Playing Field: 'Their Operational Fitness Is Incredible'

Ford Motor Co F CEO Jim Farley said earlier this week that it is upon the company management to tackle Chinese EV models such as the Xiaomi SU7 in cost of manufacturing and product appeal.

What Happened: “While the company needs to work with government partners to make it a level playing field as much as possible. But at the end of the day, it’s management’s responsibility to beat the SU7 straight up in a street fight,” Farley said about imposing tariffs on imports from China to protect domestic automakers.

“…what I learned after 40 years in this industry is the company has to stand on its own, toe-to-toe with the cost of those (Chinese) companies and the product appeal of those companies,” he said.

Chinese EV players like BYD Co or Xiaomi do not sell EVs in the U.S. However, Chinese vehicle makers are expanding to be a major force in the industry, Farley noted.

“Their operational fitness is incredible. Their supply chains are now expanding globally and they’re increasing their exports around the world,” he said.

President Trump imposed 10% on Chinese imports over the last weekend.

Why It Matters: In October, Farley shared his reluctance to part with the SU7 which Ford flew for him from Shanghai to Chicago. He praised its performance and market success, noting, "They sell 10,000, 20,000 a month. They're sold out for six months." Xiaomi has sold over 150,000 SU7 EVs till date.

For Ford’s EV segment called Model e, the company reported a full-year EBIT loss of $5.08 billion in 2024. The company expects $5 billion to $5.5 billion in losses in its EV segment this year, in line with the loss recorded last year.

Ford CEO Jim Farley also addressed the possible impact of increased tariffs on imports from Mexico and Canada on Wednesday in the earnings call. While a few weeks of tariffs will be manageable, prolonged 25% tariffs will have a huge impact on the auto industry and mean higher prices for customers, he said.

President Donald Trump announced tariffs of 25% on goods from Mexico and Canada last weekend, possibly impacting automakers including General Motors and Ford whose supply chains rely on these regions. Trump, however, delayed the imposition of the tariffs for a month after a discussion with the countries' leaders on Monday.

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