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US Can’t Yet Compete With China on EVs, Ford Chairman Says

Bill Ford, the great-grandson of company founder Henry Ford, also addressed criticism from US senators like Marco Rubio on the automaker’s plans to partner with Chinese battery company CATL


Ford Motor Company Chief Executive Bill Ford
Ford Motor chief executive Bill Ford announces Ford will work with Chinese battery giant CATL to build an all-electric vehicle battery plant in Marshall, Michigan. Photo: Reuters.

 

The United States is not yet ready to compete with China in the production of electric vehicles (EVs), Ford Motor Executive Chairman Bill Ford told CNN in an interview on Sunday.

“They developed very quickly, and they developed them in large scale. And now they’re exporting them,” Ford told CNN’s ‘Fareed Zakaria GPS’ Sunday programme.

“They’re not here but they’ll come here we think, at some point, we need to be ready, and we’re getting ready,” Ford said.

 

Also on AF: EV Boom Amps Up Costs, Environment Risk in China’s Lithium Hub

 

Bill Ford, who is the great-grandson of company founder Henry Ford, also addressed criticism from US senators like Marco Rubio, who have objected to the automaker’s plans to partner with Chinese battery company CATL on a $3.5 billion EV battery plant in Michigan.

Ford said the plant was wholly focused on building manufacturing capacity in the US. Partnering with China’s CATL was aligned with the objectives of the Biden Administration’s Inflation Reduction Act (IRA), he added.

“It [Michigan] is a wholly owned Ford facility. They’ll be our employees, and all we’re doing is licensing the technology. That’s it,” he said.

Ford said the Michigan battery plant is a chance for the automaker’s engineers to learn the technology and then use it themselves.

“We’ll understand how CATL makes the batteries but also prepares them to be integrated into the vehicle… that’s really important that our engineers gain that knowledge so we can eventually do it ourselves,” Ford said.

Ford CEO Jim Farley said in May that Chinese electric vehicle makers are its main rivals in the sector. He added that Ford needs distinctive branding or lower costs to beat Chinese automakers.

“I think we see the Chinese as the main competitor, not GM or Toyota. The Chinese are going to be the powerhouse,” Farley said.

 

  • Reuters, with additional inputs from Vishakha Saxena

 

Also read:

Ford CEO Admits US Auto Giant Needs New China Strategy

China’s EV Stars Leaving Global Auto Rivals in Their Wake

China’s CATL to Help Tap Into Bolivia’s Lithium Riches

China EV Battery Giant CATL Sees Profits Nearly Triple

 

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]