Ford CEO Farley speaks again on China’s auto industry: every global automaker must confront the challenge

On Feb. 10, Nikkei Asia reported that Ford President and CEO Jim Farley described China’s auto industry as a “wild card” that every global automaker must confront.

Ford reported a net loss of $8.18 billion in 2025, largely due to $15.9 billion in special charges related to canceled EV projects, including asset impairments and the termination of its battery joint venture with South Korea’s SK On. This marked a sharp reversal from the previous year’s $5.87 billion net profit. Revenue rose 1% year-over-year to $187.26 billion, but profitability deteriorated significantly.

Farley noted that Chinese brands now dominate global EV competition and warned that subsidy-driven price pressure could reshape global pricing power. In 2025, China exported 7.098 million vehicles, up 21.1% year-over-year.

Ford plans to adopt an “opportunistic” strategy in China, leveraging joint ventures as low-cost export bases. Despite scaling back EV programs, Ford continues to partner with CATL in Michigan to produce batteries for affordable models.

Farley said the company’s focus is now on disciplined capital allocation and selective collaboration, prioritizing “efficient partial electrification” projects and investing in markets with stronger profit potential.

He previously stated that Ford missed Japan and Korea—and “cannot afford to miss China again.”