Ford CEO says it is 'too late' for Europe to take on Chinese automakers, but claims Ford still has a chance

Ford CEO Jim Farley has often warned about Chinese automakers, and he’s now doubling down on his predictions.

In Farley’s view, Chinese automakers are a force to be reckoned with, and there isn’t much time.

In his opinion, Europe is already doomed.

And he has an idea regarding what the US should do.

How Chinese automakers got so good so quickly

China skipped a generation of technology and went from making bicycles to making EVs.

For years, they tried copy-pasting European and American gas cars, but the result – let’s be honest – was pretty bad.

So they made a strategic decision, ditched gas cars completely, and focused on electric cars.

Mostly because both in Europe, the US, and Japan these vehicles were not being taken seriously enough.

Fast-forward to 2026, these manufacturers are dominating the EV market in several regions, and not only that, they’re also beginning to build ICE vehicles again.

This time with good results.

Vertical integration is a key component of their MO.

It saves headaches and money, and it allows them to produce cars at incredible rates, and cheap prices.

This is why, according to Ford CEO Jim Farley, Europe is already way behind.

‘It’s already too late’ for Europe

For several reasons, including cybersecurity, the US is still keeping what is essentially a de-facto blanket ban on vehicles made in China.

However, US and Chinese companies are beginning to collaborate, which in Farley’s view is something that must be done with caution.

“I think it’s just important for us to take our time to be considerate,” Ford CEO Jim Farley said at the Automotive News Congress in Detroit, as reported by CNBC.

“I watch what’s happening in Europe right now, where that was not the case, and it’s really something that they have to deal with now, and it’s too late.”

The reason why Ford partnered up with Chinese companies

Simplified, vertical integration basically mean doing everything in-house.

And the Chinese are very good at that, hence why Ford partnered up with Chinese companies.

Specifically, Ford teamed up with Chinese auto giant Geely and also with Chinese battery giant CATL.

Farley defended this decision and claimed it was necessary.

“Our answer is pretty simple. We’re going to partner with the Chinese where we don’t have [intellectual property], where we can be more capital efficient in places like Europe or Southeast Asia,” he said.

Hopefully he’s right, and it’s not ‘too late’ for the US, too.