Ford manager: We better start with electric cars or we have no future as a company

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Are cheaper Chinese EVs a ‘colossal strategic threat’ entering the US market? Ford EV chief operating officer Marin Jaya certainly thinks that’s true. What’s more, Ford sees cheaper Chinese EVs as a major threat.

The company had better “start with electric cars or we have no future as a company,” Jaya explained. “They are ahead of us in this technology,” quoted Elekrtek.

Ford recently withdrew future electric car initiatives in the US, citing “slower than expected demand” as the reason. That was followed by a cut in F-150 Lightning production and about $12 billion in cost delays.

Ford has halted construction in the US of a $3.5 billion electric car battery plant

What are the reasons

Ford’s Model e electric car division lost $4.7 billion last year. The company blamed “extremely competitive pricing” and new investment for those losses.

However, Ford CFO John Lawler insisted that “electric cars are here to stay.”

Tesla and Chinese electric cars are the company’s biggest competition.

Ford CEO Jim Farley noted that Ford’s biggest competition will be “affordable Tesla and the Chinese manufacturers.”

Ford expects Chinese automakers to build plants in Mexico because they want to save themselves the 27.5% tariff on imports from China.

The head of BYD Mexico did announce to Nikkei that BYD is considering building a plant in the country.

According to him, Mexico is a market with great potential. BYD will use it as a hub for exports to the US. Mexico is the subject of similar ideas from companies such as Kia, Tesla, BMW and Stellantis to produce electric cars.