Ford's CEO: Europe Can't Stop Chinese Carmakers
Jim Farley, CEO of Ford, stated at a Detroit conference that it is too late for Europe to effectively compete against Chinese carmakers. He advised the United States to take its time in deciding its approach. This comes as Ford has established a joint venture with Geely in Valencia, Spain, where two electric SUVs will be built starting in 2028.
"I watch what’s happening in Europe right now, where that was not the case, and it’s really something they have to deal with now, and it’s too late," Farley remarked at the Automotive News Congress, as CNBC reported.
Chinese brands captured 12% of the European car market in August, a significant rise from virtually nothing in 2020, according to Dataforce. Globally, their share increased by nearly 70% between 2020 and 2025, per GlobalData's figures.
Farley suggested that Ford should partner with Chinese firms where it lacks intellectual property, prioritizing regions like Europe and Southeast Asia. This strategy is already in motion, as demonstrated by the Valencia joint venture.
Ford owns 66% of this venture, while Geely holds the remaining 34%. They plan to produce four electric models starting in 2028, with operations commencing in early 2027. Alex Nan, a Geely vice president, described it as building cars "in Europe, for Europe, with a trusted partner."
The U.S. government has expressed concerns, with Transport Secretary Sean Duffy asking Ford to sever its ties with China's Valencia operation last month. However, Brussels takes the opposite stance, proposing the Industrial Accelerator Act to restrict Chinese investments in strategic sectors to joint ventures capped at 49%.
Farley acknowledged that Chinese EVs could reach America in five to ten years but emphasized Ford's commitment to competing with its own electric vehicle, a pickup truck scheduled for release next year.
Geely, meanwhile, has no plans to build new factories in Europe but aims to increase overseas sales, which grew by 158% in the first five months. Farley noted that Chinese market share in Mexico stands at 25%, although this figure was not officially published.