Xiaomi Auto enters the U.S.? Reports say Ford is exploring a joint venture with Xiaomi to establish an electric vehicle company
Ford Motor Company is in preliminary talks with Chinese electric vehicle manufacturer Xiaomi to explore the establishment of a joint venture in the United States to manufacture electric vehicles. Although Ford has denied the related reports, this move could provide an opportunity for Chinese car manufacturers to enter the U.S. market. Ford CEO Jim Farley supports Chinese electric vehicles and has previously imported Xiaomi models. Analysts point out that Ford faces challenges from Chinese electric vehicles entering the U.S. market, as it has halted production of several models in key markets, and its transformation process has stagnated
According to a report by the Financial Times on the 1st, Ford Motor Company has held talks with Chinese electric vehicle manufacturer Xiaomi regarding a potential partnership to establish a joint venture in the United States for manufacturing electric vehicles. This potential deal would open the door for Chinese automakers to enter the U.S. market.
The report cites four informed sources revealing that although discussions are in the preliminary stage, Ford has explored the possibility of forming a joint venture with Xiaomi to produce electric vehicles in the U.S. Ford has also been in contact with BYD and other Chinese automakers regarding potential collaborations in the U.S.
Ford denied this, stating, "This report is completely false and has no basis in fact." Xiaomi did not respond to requests for comment, and BYD declined to comment.
Farley Supports Chinese Electric Vehicles
Ford CEO Jim Farley is a staunch supporter of Chinese electric vehicles, having imported the Xiaomi SU7 model for his personal use.
Earlier this month, Farley hosted Trump at a Ford truck plant in Dearborn, Michigan. During the visit, Trump told business leaders that if Chinese companies "are willing to come here to build factories, hire you, and your friends..."
Consulting firm AutoPacific President Ed Kim stated that Ford is particularly vulnerable to the challenges posed by Chinese electric vehicles entering the U.S. market, as Ford has previously discontinued several models in key mass-market segments in anticipation of the electric vehicle transition, but the transition process has currently stalled.
Analysts believe that these models include the discontinued compact crossover Ford Escape and the midsize SUV Ford Edge. Ford does not have replacement models for them until at least 2027, when the company plans to launch a new low-cost electric vehicle platform.
Ford's stock fell 0.22% to $13.85 in after-hours trading.
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