Ford Motor Co F CEO Jim Farley said on Thursday that Chinese EV makers are its biggest competitors.
What Happened: “We see the Chinese as the main competitor, not GM or Toyota,” Farley said. “The Chinese are going to be the powerhouse, I think” The CEO was speaking at the Morgan Stanley Sustainable Finance Summit.
The winners in the EV market as named by Farley include BYD Co, Geely, Great Wall Motor Co Ltd, Changan and SAIC.
“Either you need to have very distinct brands, which we think we do, or you have to beat them on cost. But how do you beat them on cost when their scale is five times yours,” Farley said.
Showering praise on Warren Buffett-backed BYD, Farley said that the Chinese EV giant has a bigger scale than U.S. EV giant Tesla and they developed a better battery with the LFP technology. He added that he “likes” the company and it is “very impressive.”
Why It Matters: Ford is eyeing cost reduction in China in a bid to build a sustainable business. “We are aware that our costs are not competitive, and we are working internally and with our partners to reduce costs in all areas,” Ford said in a statement to Benzinga earlier this month.
Earlier this week it was also reported that China dethroned Japan to become the world’s largest exporter of cars. China exported 1.07 million vehicles in the first quarter, seconded by Japan which exported 954,185 vehicles.
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