Ford bosses were “shocked” by a Chinese electric car test drive. “Jim, this is something like nothing that’s happened before.” – HotNews.ro

Jim Farley, the CEO of Ford, and John Lawler, the US carmaker’s chief financial officer, were “shocked” after getting behind the wheel of a Chinese electric SUV for a test drive during a visit to China, reports said. Business Insiderciting information received by The Wall Street Journal.

Like other executives of major American companiesFarley and Lawler visited China in early 2023 after the Beijing regime lifted the latest travel restrictions imposed due to the COVID-19 pandemic.

Journalists from The Wall Street Journal have now discovered behind-the-scenes information about the trip made by Ford executives and have published it in a material entitled “What Scared Ford’s CEO in China”.

The WSJ writes that Farley and Lawler decided to take an electric SUV made by Changan Auto, a Chinese state-owned company with which Ford has had a long-term partnership, for a quick test. Farley was behind the wheel, and Lawler was sitting on his right.

The WSJ notes that they were both shocked and impressed by how smoothly and noiselessly the test went. “Jim, this is like nothing that has ever existed. These guys are ahead of us,” the Ford boss told his CFO, according to the source cited.

Farley’s concerns were raised after a separate visit to China in May 2023. “John, this is an existential threat,” he told John Thornton, a former Goldman Sachs executive who holds a seat on the Board of Directors. Ford now.

Chinese car manufacturers have come to dominate some markets

Business Insider remembers that, although they have a small presence in the American market, Chinese electric cars have been very successful in the markets of countries with emerging economies such as Brazil, Mexico or Thailand.

According to a report by the research company ABI Research for Business Insider, Chinese car makers have a share of 88% of the electric car market in Brazil and 70% in Thailand. The data was published based on information from the first quarter of the year.

In May of this year, the administration of US President Joe Biden announced that will increase customs duties from 25% to 100% for electric cars from China, as well as a wide range of other imports from that country.

The group Reuters he noted at the time that there are very few Chinese-made cars in the US, and that this is largely due to tariffs imposed by former President Donald Trump while in office he in office.

US concerns over Chinese electric car imports

But Gina Raimondo, the US commerce secretary, said on February 29 that the White House administration is launching an investigation into electric car imports from China before their numbers increase and “they have the ability to access our personal data and threaten national security”.

The Federation for American Manufacturing then said that the widespread importation of Chinese cars into the United States would represent an “extinction event” for American automakers.

The Biden administration officially justified the tariff increase by saying that China’s anti-competitive practices create “unacceptable threats” to the “economic security” of the United States.

The EU and Canada have also raised tariffs on Chinese-made electric cars

The EU decided in June temporary growth of customs duties on electric car imports from China, subsequently study The European Commission decided to launch last year that Chinese car manufacturers receive state subsidies that allow them to sell at prices lower than actual costs.

Canada also mentioned near the end of August that it would impose 100% tariffs on electric cars from China, with Canadian Prime Minister Justin Trudeau saying at the time:

“I think we all know that China doesn’t play by the same rules.”

“What is important about this is that we are doing it in alignment and in parallel with other countries around the world,” said the Canadian leader.