Warning about what “China could put us all out of business“He came from The heart of the Ford Motor Company. Jim Farley made the phrase during a recent interview about the smell of hot oil emanating from the rotor hood at his Michigan plant.
The Oval Executive was not talking about A Far danger: refers to a Actual capacity That could flip the dashboard North American market And force it to rethink industrial strategy.
Jim Farley, CEO to Ford Motor CompanyHe does not skimp on warnings:China has sufficient capacitywith existing factories, to supply the entire North American electric vehicle market; It can put us all out of work.“.
What do these words mean in the industrial class?
When Farley talks about “Sufficient capacity“It’s not a metaphor. Chinese automobile industry (With actors like BYD, Xiaomi or Nio) has rapidly expanded the scope of production, technology and low costs force us to rethink the global board.
Fact to put in context: Farley comments that he drove a car Xiaomi SU7 “Imported from China” And “I wouldn’t change it for anything“This shows that it is not just about size; Quality and technology conscious Which already competes with the West.
Effects on Ford and the American industry
- Ford announced an investment of approx 5 billion US dollars In one New electrical production line in Kentucky by 2027.
- he The dangers discovered by Farley: Not just competition on scale but execution on scale. “It’s not that our technology is competitive“But if we will be able to produce at scale with new suppliers.”
Why can China put everyone out of work?
scent Hot oil from Chinese electric motors It’s already been mixed with adrenaline Massive industrial change:Multiple factories Cheap lithium iron phosphate (LFP) batteriesUltra-efficient production chains. BYD, for example, has achieved sales and profit results that have attracted attention even within Ford itself.
Farley explains without flourish: “China’s success It’s for good reason: it delivers Great innovation at a very low cost…there Hundreds of companiesall sponsored by their local governments.
What can Ford (and Western industry) do to respond?
- Reducing costs and complexity in productionFord talks about:Smallest plant footprintWith less labor and less complexity.
- Accelerate battery technologyUnified blocks and standardized platforms.
- Strengthening the local supply chain To ensure independence from imports or geopolitical risks.
When Farley warns that “If we lose this, we will have no future at Ford“, he is not saying it abstractly. He is referring to A Structural risk.
In short: the era in which The assembly line was synonymous with power for the West He hit the ceiling. The question now is whether Western automobile industry He will know how to adapt or he will stop working.
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