During a recent episode of the Fully Charged Show podcast, Ford Motor Company CEO Jim Farley revealed an unexpected admission – he’s been personally driving and enjoying a Xiaomi SU7 electric vehicle for the past six months. The Chinese-made sedan, which Ford imported from Shanghai to Chicago for research purposes, has apparently left such an impression that Farley is reluctant to part with it.
This revelation comes after Farley’s pivotal visit to China in 2023 with Ford CFO John Lawler, where they experienced firsthand the technological advances made by Chinese automakers. During their visit to Ford’s Chinese partner Changan Automotive, both executives were left speechless after test-driving one of Changan’s electric SUVs, with Lawler expressing to Farley that their Chinese counterparts had surpassed them.
The Ford CEO highlighted how Chinese technology companies have successfully integrated into the automotive sector, noting that while Western phone manufacturers haven’t ventured into car production, Chinese giants like Huawei and Xiaomi have become integral to vehicle manufacturing in their home market. He specifically praised Xiaomi’s success, pointing out the company’s impressive monthly sales volumes and extensive waiting lists for the SU7.
Farley’s candid appreciation for Chinese EVs stems from a deeply personal history in the automotive industry. During the podcast, he reflected on his 20-year tenure at Toyota, recalling how his career choice strained family relationships in Detroit. The experience of watching Japanese automakers rise to prominence, while American manufacturers struggled to respond effectively, has significantly influenced his current strategy at Ford.
To address the competitive challenge from Chinese manufacturers, Farley and Ford Chairman Bill Ford have implemented a radical approach by establishing a secretive “Skunk Works” team in California. This specialized unit, comprising carefully selected talent from companies like Tesla, Rivian, Lucid, and Apple, operates independently from Ford’s main corporate structure in Dearborn. The project’s level of autonomy is so strict that even Farley himself cannot access the facility with his Ford credentials.
Farley drew parallels between this initiative and the development of the legendary SR-71 Blackbird spy plane, emphasizing the need for a fresh start in approaching electric vehicle development. He expressed concern that Ford’s traditional corporate structure would struggle to compete with companies like BYD, necessitating this unconventional approach to innovation.
The decision represents a departure from what Farley describes as other traditional manufacturers’ strategy of simply adopting Chinese platforms. Instead, Ford is attempting to create something entirely new through its California-based team, demonstrating the company’s commitment to maintaining competitiveness in the evolving automotive landscape.
This strategic shift comes at a critical time for Ford, as Chinese automakers continue to gain market share and technological advantages in the electric vehicle sector. Farley’s honest acknowledgment of enjoying a competitor’s product, while simultaneously working to surpass it, reflects the complex dynamics at play in the global automotive industry’s transition to electric vehicles.
The Ford CEO’s experiences, both past and present, have shaped a strategy that aims to prevent history from repeating itself, as the industry faces another potentially transformative period similar to the rise of Japanese automakers decades ago. Through the establishment of the “Skunk Works” team and a willingness to learn from competitors, Ford is positioning itself to address what Farley has previously described as an “existential threat” from Chinese electric vehicle manufacturers.