Ford CEO Jim Farley Says It's 'Too Late' to Save Europe From Chinese EVs, Warns the U.S. Must 'Be Extremely Careful' Before They Arrive Here

Some of the world’s best-selling electric cars still can’t be bought in America. Supporters of a permanent ban are racing to keep it that way before Congress wraps up its session next month.

Ford Motor Co. (NYSE:F) CEO Jim Farley has already made his case, and he’s pointing across the Atlantic as Exhibit A.

“I think it’s just important for us to take our time to be considerate,” Farley said at the Automotive News Congress in Detroit on Sept. 29. “I watch what’s happening in Europe right now, where that was not the case, and it’s really something that they have to deal with now, and it’s too late.”

He said the U.S. must “be extremely careful around how the Chinese OEMs come to our country.”

Europe Is Already Living It

Chinese brands were barely a blip in Europe in 2020. In August, they registered 97,639 vehicles there, more than double a year earlier, for a record 11.7% of the market, according to Dataforce figures as reported by Bloomberg.

The shift is happening closer to home, too. Farley said a quarter of the vehicles sold in Mexico are now sourced from China.

Frenemies In Valencia

Ford isn’t steering clear of Chinese companies altogether. In July, it announced a joint venture with Geely Automobile Holdings Ltd. (OTC:GELYF) (OTC:GELYY) at its plant in Valencia, Spain, where Geely plans to build two electric SUVs starting in 2028. Ford will own 66% of the venture.

Ford also licenses battery technology from Contemporary Amperex Technology Co. Ltd. (HKEX:3750) for its plant in Marshall, Michigan.

“Our answer is pretty simple,” Farley said at the conference. “We’re going to partner with the Chinese where we don’t have [intellectual property], where we can be more capital efficient in places like Europe or Southeast Asia.”

Washington noticed. In a letter dated Sept. 3 , Transportation Secretary Sean Duffy expressed “profound concern” about Ford’s ties to Contemporary Amperex, Geely and BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF).

The Xiaomi In His Driveway

Farley’s caution comes from someone who has seen the competition up close. He has called China’s EV progress “the most humbling thing” he has ever seen and labeled Chinese automakers the “700-pound gorilla” of electric vehicles.

He also spent six months behind the wheel of a Xiaomi Corp. (OTC:XIACF) (OTC:XIACY) SU7 electric sedan.

“I don’t like talking about the competition so much, but I drive the Xiaomi,” Farley said on the “Fully Charged” podcast in October 2024. “We flew one from Shanghai to Chicago, and I’ve been driving it for six months now, and I don’t want to give it up.”

On the "Rapid Response” podcast in April, Farley said BYD was “the best in the business” for Ford on cost, supply chain and manufacturing. He also explained why he benchmarked against Chinese EVs instead of Tesla Inc. (NASDAQ:TSLA).

“Nothing against Tesla—they’ve been doing great—but they really don’t have an updated vehicle,” Farley said.

A bipartisan bill to permanently ban Chinese vehicles stalled in the Senate on Sept. 30, the day after Farley spoke, and was pushed past the midterm elections. President Donald Trump, meanwhile, has said September he would not oppose Chinese automakers building cars in the U.S. as long as they hire American workers.

Once the cars are in the showroom, there’s no recall for lost market share. Farley wants Washington to make its call before that happens.

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