Ford CEO: Chinese Auto Industry is ‘The Most Humbling Thing I’ve Ever Seen’

China’s electric vehicle (EV) industry has gone from an afterthought to a global powerhouse seemingly overnight — and no one feels that more than Ford CEO Jim Farley. Speaking candidly at the Aspen Ideas Summit, Farley called China’s progress “the most humbling thing I’ve ever seen.” Over the past year, he’s visited China six or seven times, bringing his leadership team to experience the competition up close. What they discovered shocked them.

Farley’s main takeaway? Chinese automakers have mastered in-vehicle technology in ways that leave most Western brands scrambling to catch up. While American cars often tout “tech” in the form of basic media players and driver-assist features, Chinese EVs deliver something far closer to a true “smartphone on wheels.” Thanks to companies like Huawei and Xiaomi, the car instantly recognizes you, mirrors your digital life without pairing, integrates AI companions, enables seamless in-car payments, sells you movie tickets, and even uses facial recognition to customize each seat’s settings.

But the competitive edge doesn’t stop at flashy software. Chinese automakers have leveraged government support, deep vertical integration, and massive scale to achieve low costs — all while delivering vehicles that feel premium. Farley admitted the quality and cost of these vehicles are “far superior” to what he sees in the West. BYD’s $10,000 Seagull hatchback is a perfect example: it’s shockingly cheap, but it doesn’t feel cheap. In Europe, the same car sells for around $26,000 — still dramatically undercutting most rivals.

While some analysts believe China’s price war is unsustainable and expect consolidation among weaker players, the immediate challenge for Western automakers is real. Chinese EV brands are rapidly expanding globally, and although high U.S. tariffs keep them out for now, many expect their arrival is only a matter of time.

“People don’t realize that China has IP that America needs,” Farley said. “We have to be humble enough to learn from them.”

So, how is Ford responding? By learning, fast. Farley brings entire teams to China to drive the latest EVs, fly their favorite models back to Detroit, tear them apart, and study them in detail. Ford is also working on a $30,000 EV — its own “Model T of EVs” — and building LFP battery capacity in Michigan through a licensing deal with China’s CATL. Though politically controversial, Farley insists partnerships like this are critical for producing affordable EVs in America.

In October of last year, Farley admitted he has been driving a Chinese Xiaomi EV SU7 for six months and said he “doesn’t want to give it up.”

Ford’s Affordable EV Comeback is Not Without Controversy

If you ask Ford’s Lisa Drake, the $3 billion BlueOval Battery Park Michigan project isn’t just the next big step for Ford Motor Company — it’s also a homecoming.

Located about 90 minutes from Detroit, this new factory will be the first automaker-owned facility in the U.S. to produce lithium-iron phosphate (LFP) battery cells, a crucial and more affordable battery technology currently dominated by Chinese manufacturers.

LFP batteries are essential to making EVs more affordable and accessible, Drake explained. “It slipped through our grasp to the rest of the world,” she said. “This is an opportunity for Ford to lead and bring the technology back to the U.S.”

Once operational, the plant will create around 1,700 manufacturing jobs and produce up to 20 GWh of energy output yearly, enough to power roughly 250,000 vehicles.

The 2 million-square-foot plant in Marshall, Michigan, is already taking shape and will soon be equipped to turn raw materials into LFP cells for Ford’s next wave of EVs — including a lower-cost model being developed by Ford’s “skunkworks” team in California.

Ford’s Planned Small, Affordable EVs

In February, AutoCar and Yahoo! Autos reported that small, affordable Ford EVs may be hitting America’s roads as soon as 2026. This “skunkworks” effort marks more than just a new platform; it’s a symbol of Ford’s broader pivot.

Speaking on Ford’s evolving brand strategy, Anna Lena Strigel, director of sales and brand for Model E in Europe, noted that Ford’s future lineup will be a smaller, more targeted portfolio, focused on strategic appeal rather than sheer volume. A rumored possible EV version of Ford’s economical Fiesta is shown below in EVinfo.net’s AI rendering.

LFP and LMR Battery Tech

LFP technology was originally developed in the U.S., but Chinese companies quickly scaled and commercialized it, leaving American automakers dependent on imports from giants like CATL. Ford’s new plant will use a licensed design from CATL — a move that has ignited political controversy. Despite this, Drake insists it was the only realistic path forward. “We don’t misappropriate IP at Ford,” she said. “It’s the right thing to do for jobs and our future.”

Ford also emphasizes that LFP batteries can be built without relying on Chinese critical minerals, though it remains challenging. Meanwhile, Ford and GM are racing to develop lithium-manganese-rich batteries to reduce reliance on Chinese supply chains further.

In April, Charles Poon, Director, Electrified Propulsion Engineering at Ford Motor Company, announced Ford is actively scaling its LMR cell technology, with second-generation LMR cells already being produced on its pilot line. GM made a similar announcement soon after that.

LFP batteries are set to power Ford’s most affordable EVs first. These vehicles, including an anticipated midsize truck and small crossover, are part of Ford’s strategy to reignite EV adoption amid cooling demand and rising global competition.

Yet the project faces serious political hurdles. The plant risks losing valuable tax credits under potential future policy shifts, and its CATL connection has drawn fire from lawmakers concerned about national security and human rights issues.

Ford maintains that the plant is fully Ford-owned and operated, with the CATL licensing simply a legal necessity. “If people really knew what was at stake, they’d say ‘Go for it,’” Drake said.

In the end, this Michigan plant symbolizes more than batteries — it’s a bet on America’s ability to reclaim leadership in affordable, homegrown EV technology and manufacturing.

EVinfo.net’s Take

EVinfo.net agrees with Farley. China’s auto industry is dominating the global automotive industry, because of long-term, substantial government support for EV production and adoption. America is very far behind in EV technology, production and adoption, and therefore all US automakers are in big trouble, as the world transitions quickly from ICE to EV and we are left behind.

America’s auto industry is a large and important part of our economy, and to allow it to fail would be a big mistake. The “Big, Beautiful Bill” being debated currently is in fact a Big, UGLY bill that must be killed.

The bill cuts the EV tax credit and support for EVs, solar and clean energy at the worst possible time, ensuring that the US would fall further behind China, killing America’s jobs and economic growth, adding trillions of dollars to the national debt. KILL THE BILL.

The Electrification Coalition said killing the credits “driving much of the nation’s manufacturing investment at this critical juncture would effectively wave the white flag of defeat, ceding control over the future of transportation to China … The House must reject this act against the interest of the American people.”