Ford CEO Jim Farley says the company will work with Chinese automakers when doing so advances efficiency and innovation. As China’s rise reshapes the global auto industry, particularly in electric vehicles, Ford is looking for ways to stay competitive.
Farley did not mince words: “We will partner with the Chinese wherever we lack intellectual property and can be more capital-efficient, in places such as Europe or Southeast Asia.” He says Ford is not giving up. Instead, it is making a calculated move to stay in the race as Chinese competition rewrites the rules. Reuters and CNBC have reported that Ford is already collaborating with China’s CATL on battery technologies, an example of its “compete and cooperate” strategy.
Europe has lost ground. Farley says the continent’s slow reaction let Chinese brands take over basic segments. The United States still has a window to act, and Farley wants Washington to move carefully, avoiding blanket bans or rushed protectionism. “I think it’s impressive that we take our time and act thoughtfully,” he said. Lawmakers are still debating tariffs and market access for Chinese vehicles, and Farley favors a measured approach.
Ford has moved beyond talk. The company has a joint venture with Geely to build electric vehicles at its Valencia plant. Production starts in 2027, with the first models set to roll out in 2028. The deal pairs competition with cooperation, allowing Ford to use Chinese strengths where it makes sense. IBTimes reports that Ford will hold 66% of the venture and Geely 34%. The project targets European customers and will include two Geely electric models.
Farley’s logic is direct: where Ford lacks its own technology or needs to use capital wisely, working with Chinese partners is necessary. Ford plans to compete head-on while forming alliances when they cut costs or speed up new products. Farley has publicly defended these partnerships, and the Detroit Free Press and other outlets have reported that Ford uses such alliances to reduce costs and accelerate EV launches, particularly in markets where it lacks internal IP or faces high investment barriers.
American carmakers are facing facts: Chinese rivals are not going away, and Ford and others acknowledge that tariffs alone will not protect them. Recent statements point to billions in expected losses tied to trade barriers. Some see targeted partnerships as the only way to maintain margins and scale up electric vehicle production.
The fight in Washington is intensifying. Lawmakers are considering higher tariffs and new limits on Chinese-made vehicles, citing concerns about economic and technological dependence. Ford is investing in its own electric platforms, including a new base for electric pickup trucks, to compete with the flood of low-cost Chinese models.
Regulations remain tough. The US maintains high tariffs on Chinese electric vehicles and parts, while tax breaks are limited for cars with Chinese supply chains. Those rules make things harder, but Ford continues to look for practical ways forward.
Ford’s willingness to work with Chinese firms where it makes sense marks a break from old rivalries. The company is focused on survival, not slogans, and its approach differs from the all-or-nothing rhetoric in politics.
Other companies are moving too. Uber’s push for driverless taxis in Madrid, as reported earlier, shows how quickly the auto world is shifting. Technology and global competition are redrawing the map.
