CEO believes Ford must rebrand for China as EVs rise. Chief Executive Jim Farley said Ford Motor Co. (F.N.) must rebrand for China’s growing and hyper-competitive E.V. industry.
“We’re going to have to rethink what the Ford brand means in a place like China,” Farley told reporters in Detroit on Thursday evening.
It’s not mid-market. It’s overstuffed.”
He was not asked to describe a brand reset.
In China’s first quarter, BYD (002594. S.Z.) topped battery-electric and plug-in hybrid vehicle sales, which drove down Ford-brand sales and other foreign automakers’ market share.
After returning from China, Farley said that the only premium brands that succeeded were all-electric and focused on technology, the “digital experience” of drivers, and services. He named Xpeng (9868. H.K.), Nio (9866. H.K.), and Li Auto (2015. H.K.) successful domestic enterprises.
He added that Chinese state-owned automakers had launched new EV brands.
“The differentiation really comes down to technology and services,” he said.
“They’re gorgeous. Beautiful cars. Visit China.”
Farley said Chinese automakers competed with Tesla (TSLA.O)’s Model Y in the market for two-row, SUV-styled electric vehicles.
“The Chinese brands have so much overcapacity in the two-door crossover that the amount of money those companies are losing and burning is incredible,” he said.
They’re focusing on Europe. European exports are top-notch. “Everyone’s going.”
Farley, who appeared by video at the Shanghai auto show this week, said BYD, which sells China’s most popular EV and leads the EV and plug-in hybrid markets, had a unique lead in managing all critical supply chain elements.
BYD is outstanding. “Tesla is in another world,” he stated.
“They’re vertically integrated to batteries. Nobody does that worldwide.”
BYD’s Seagull entry-level EV surprised experts and industry officials at this week’s Shanghai auto show with its design, battery range, and price.
The entry-level hatchback will cost 78,000 yuan ($11,300), well below EV global brands.
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