Ford CEO Jim Farley is urging US policymakers to carefully consider how Chinese automakers enter the American market, pointing to Europe as an example of how quickly Chinese vehicle brands can gain ground.
Speaking at an Automotive News conference in Detroit on Sept. 29, Farley said the United States should be “extremely careful” about how Chinese automakers are allowed to enter the country. He described Europe as a market where the window to respond has already narrowed.
Farley’s comments come as Chinese automakers continue expanding their presence in international markets. China is projected to export about 12 million vehicles this year, compared with roughly 3 million in 2022, according to the report. Chinese brands have gained market share in Europe while established automakers face growing competition.
At the same time, Farley said Ford is willing to work with Chinese companies when partnerships make business sense or provide expertise the US automaker does not currently have. Ford already has a partnership with Chinese battery manufacturer CATL for lower-cost batteries at a Michigan facility.
Ford has also announced a separate joint venture with China’s Geely to produce multi-energy passenger vehicles at Ford’s Valencia plant in Spain. The partnership is expected to begin operations in the first half of 2027, subject to regulatory approvals, with the first vehicles planned for 2028.
Farley said cooperation and competition with Chinese automakers can exist at the same time, highlighting Ford’s effort to control costs while remaining competitive in markets where Chinese manufacturers are expanding.
The United States currently has significant barriers against Chinese-made vehicles, including restrictions on Chinese-connected vehicle software and tariffs exceeding 100 percent. The policies have effectively limited direct sales of Chinese vehicles in the American market.
Farley’s remarks also come amid continuing debate in Washington over whether existing restrictions should be strengthened. A proposed Senate measure would restrict vehicle sales by companies with more than 15 percent Chinese ownership, although lawmakers are still discussing how the legislation would affect manufacturers with Chinese investment.
The debate reflects a broader shift in the global automotive industry as Chinese manufacturers expand exports, develop electric and other new-energy vehicles, and increasingly compete with established brands in Europe and other international markets.
