Ford’s chief says Chinese car makers are now his biggest EV rivals, rather than global brands like Toyota, Tesla or GM, with the executive calling out BYD, Geely, Great Wall and SAIC as his biggest threats.
China is now the third biggest producer of new cars sold in Australia (though that includes Chinese-built Tesla models), behind only Japan and Thailand and overtaking Korea.
In fact, last month we bought 13,426 vehicles made in China, and just 15,885 made in Thailand, meaning Chinese-made vehicles could conceivably climb to second place before the year’s end.
The country’s manufacturing success is being replicated globally – including in Europe – prompting Ford’s US chief Jim Farley to label Chinese brands as his company’s biggest threat.
“We see the Chinese as the main competitor, not GM or Toyota,” he told a recent finance summit, as reported by US outlet Automotive News.
“The Chinese are going to be the powerhouse.”
The executive went on to say a combination of industry-leading battery technology, cost-effective manufacturing and economies of scale are effectively supercharging Chinese EV manufacturing, with the executive not sure his company will be able to compete on cost.
“How do you beat on them on cost if their scale is five times yours?” he asked. “The Europeans let (them) in, so now they are selling in high volume in Europe.”
His answer is branding, with Ford to ensure its models – like the incoming Mustang Mach E – have an identity that leans on the brand’s heritage and name-recognition to lure customers on more than just price.
Prong two in the fight against Chinese auto makers is to borrow from their success. Ford is investing US$3.5b in its own US-based battery plant that –using Chinese company CATL’s technology – will seek to lower the cost of battery production.
The Mustang Mach E will arrive in Australia later this year, with orders now open.
The new EV will arrive in three trim levels, beginning with the rear-wheel drive Mustang Mach-E Select, which start from $79,990. It pairs a 198kW/430Nm motor with a 71kWh lithium iron phosphate (LFP) battery to produce a 470km driving range.
Next is the Premium trim, which starts from $92,990, and ups the power to 216kW and 430Nm, and – thanks to a 91kWh battery – increases the range to 600km.
Finally, the AWD Mustang Mach-E GT will arrive as the halo model, listing at $108,990. It produces 358kW and 860Nm, and its 91kWh battery delivers a 490km driving range.
Keyword: "They're the powerhouse": Why Ford fears Chinese brands like BYD way more than Toyota or Tesla - and how it will fight back against China's flood of cut-price EVs