Gone are the days when the Chinese car manufacturers were the laughing stock of the four-wheel industry. Not only have they (largely) stopped copying the designs of Western brands, they have seriously improved their engineering know-how. With an abundance of cheap labor and access to materials that other manufacturers could only dream of, they are now a force to be reckoned with.
After a visit to China to test local cars, Ford’s CEO had a revelation. According to il Wall Street Journal, Jim Farley told Blue Oval board member John Thornton that Chinese electric vehicle manufacturers are “an existential threat“. During one of his trips, the CEO was joined by CFO John Lawler, who candidly admitted that “these guys are ahead of us.”
History repeats itself
Il Ford’s boss says he has “seen this movie before,” referring to the rise of Toyota, Honda and other Japanese manufacturers and their ability to steal sales from American brands starting in the 1980s. Similarly, Farley linked the growing impact of Chinese manufacturers to the improvement by Hyundai and Kiaimproved significantly in recent decades, especially in terms of electric vehicles.
Ford Puma electric, our render
The Chinese threat
As for Chinese manufacturers, many governments around the world are dealing with the incoming Chinese models, with the introduction of duties. From the United States to Europe, passing through Canada, the trade war with China is becoming increasingly intense.
