Ford CEO Jim Farley says Europe has already lost the chance to meaningfully slow the advance of Chinese automakers, but he believes the United States still has time to decide how much access those companies should receive. Speaking at the Automotive News Congress on September 29, Farley described Europe’s response as a warning for American policymakers.

Chinese brands held a small but growing share of the European market in 2020. Public registration data show that share reached the high single digits by the mid-2020s and continues to increase. Farley said Europe waited too long to respond as Chinese automakers expanded their global presence.

Europe’s delayed response

Farley stopped short of calling for a ban on Chinese brands in the United States. Instead, he argued that American officials should take a slower and more deliberate approach than Europe managed to pursue.

His comments connect to the European Union’s trade case involving Chinese electric vehicles, which resulted in additional duties on imports after 2023. The measures show how European governments have tried to respond after Chinese manufacturers had already established a growing foothold.

Farley has previously warned that China’s manufacturing capacity could reshape the global auto industry. His latest remarks focus on the policy choices facing the US as lawmakers debate tariffs, investment rules and whether Chinese-built vehicles should be sold in the country.

Ford’s strategy includes Chinese partnerships

Ford is both competing with Chinese automakers in Europe and working with one of them. The company has announced a joint venture with Geely to build electric vehicles at a Ford plant in Spain.

Ford says the joint venture is expected to begin operations in 2027, with production of its first new models planned for 2028. Farley defended the arrangement as a way to work with Chinese companies in areas where Ford does not own the relevant intellectual property and can use capital more efficiently, including Europe and Southeast Asia.

That approach is drawing scrutiny in the United States. A recent political letter expressed “profound concern” about the auto sector’s reliance on Chinese capital and technology. Lawmakers have also introduced multiple bills that would increase tariffs on Chinese-built vehicles or restrict their sale in the American market.

Ford’s US response to cheaper EVs

Ford is also developing products intended to compete directly with lower-priced Chinese electric vehicles. Its Universal EV platform will underpin the Fathom, a midsize four-door electric pickup that Ford plans to build in Louisville and deliver to customers in 2027.

The Fathom program will arrive alongside US rules that phase out tax credits for vehicles containing Chinese battery parts and maintain high tariffs on Chinese electric vehicles and major components. Those policies give Ford more protection in its home market, while also raising the stakes for the company’s effort to develop competitive EVs without relying on Chinese technology or capital.

Farley’s comments outline two linked decisions: how far Washington should open the US market to Chinese automakers, and how Ford can balance overseas partnerships with electric vehicles developed and built for American buyers.