A bombshell report by a respected publication claiming Ford wants to help one of China’s biggest brands launch in the US has been rubbished by both parties.
Insiders have reportedly told the Financial Times that Ford has already spoken with Xiaomi – a smartphone giant now making EVs – about helping produce the latter’s cars in the US.
In addition to Xiaomi, the Financial Times’ sources also said Ford had engaged with BYD and other unnamed Chinese carmakers about collaborating in the US market, though it’s understood these would not be to the same level as the rumoured Xiaomi deal.
Ford responded swiftly to the report, saying, “this story is completely false. There is no truth to it”, while a representative for Xiaomi added that it’s not only false, but that it “does not sell its products and services in the United States and is not negotiating to do so”.
The current list of Chinese brands in the US is small. Both Polestar and Lotus are majority owned by Chinese companies and investors, however they are headquartered in Sweden and the UK, respectively.
Since 2024, Chinese-made EVs have been subject to a 100 per cent tariff in the US, making them financially unviable to be sold in the nation, though reports have circulated since that some brands were looking to build across the border in Mexico to skirt the higher taxes.
Current President Donald Trump recently said if Chinese brands “want to come in and build a plant and hire you and hire your friends and your neighbours, that’s great, I love that”, representing a major change of tune compared to recent approaches.
Ford CEO Jim Farley has previously warned the risk China’s car industry poses exceeds that which Japan once held over the automotive world.
“Oh, I think it’s exactly the same thing, but it’s on steroids,” Farley told CBS Sunday Morning when asked whether the rise of China could be likened to Japan’s car industry domination in November.
“They have enough capacity in China with existing factories to serve the entire North American market, put us all out of business.
“Japan never had that. So, this is a completely different level of risk for our industry.”
Farley, who has served as Ford CEO for the past five years, has previously praised some of China’s carmakers.
“I don’t like talking about the competition so much, but I drive the Xiaomi,” Farley said on the Fully Charged podcast in 2024.
“We flew one from Shanghai to Chicago, and I’ve been driving it for six months now, and I don’t want to give it up.
“For a company like Ford, [the rise of China’s auto industry] has been something we’ve been watching for a while, but I’ve had two trips to China the last two years that were literally epiphanies.
“The last one was about the Xiaomi product. In the West, our cell phone companies don’t have car companies. But in China, both Huawei and Xiaomi, the two biggest cell phone companies, are inside of every vehicle that is made.
‘Humbling’ Chinese cars could end traditional brands – executive
“In fact, Xiaomi – you could argue [it’s] the Apple of China – they make the whole car, and now it’s one of the best-selling cars in China.
“Everyone’s talking about the [cancelled] Apple car, but the Xiaomi car now exists, it’s fantastic and they’re sold out for six months – that is an industry juggernaut and a consumer brand that is much stronger than car companies.”
For what it’s worth, President Trump is reportedly due to visit China in April and engage in trade talks, though it’s not yet known whether the automotive industry would be included in this.
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