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Ford CEO Jim Farley says he has been driving Chinese tech giant Xiaomi's electric car for the past six months.
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Farley described Xiaomi as an “industry juggernaut.”
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Farley previously told a board member that China's auto industry was an “existential threat.”
Ford CEO Jim Farley says he doesn't want to give up the Xiaomi Speed Ultra 7, which he has been driving for the past six months.
“I don't really like to talk about the competition, but I drive the Xiaomi,” Farley said while speaking to British host Robert Llewellyn on “The Fully Charged Podcast.” The podcast, which Llewellyn hosts, aired on Monday.
“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,” Farley continued.
The SU7 is Xiaomi's first electric vehicle. The Chinese tech giant produces three versions of the car: SU7, SU7 Pro and SU7 Max. Farley did not specify which version he drove.
“It's fantastic. They're selling 10,000 to 20,000 a month. They've been sold out for six months,” Farley said earlier in the interview about Xiaomi's success with the SU7.
“You know, that's an industry giant and a consumer brand that is much stronger than car companies,” he added.
Representatives for Farley at Ford did not respond to a request for comment from Business Insider sent outside regular business hours.
The popularity of the SU7 has come at a cost to Xiaomi. When Xiaomi reported its second-quarter earnings on August 21, its EV affiliate posted an adjusted loss of $252 million.
That means Xiaomi lost about $9,200 for each of the 27,307 SU7s it shipped that quarter. The SU7 sells for a base price of 215,900 yuan, or about $30,000, and is only available in China.
A Xiaomi spokesperson told BI's Matthew Loh in August that the company wanted to reduce its production costs by increasing the size of its EV business.
“In addition, Xiaomi's first EV is a pure electric sedan and the investment cost is relatively high, so it will take some time to absorb this part of the cost,” the spokesperson told Loh.
An 'existential threat'
These aren't the first comments Farley or his fellow Ford executives have made about the size and progress of China's EV industry.
After visiting China in May, Farley told a Ford board member that China's auto industry posed an “existential threat,” The Wall Street Journal reported in September.
In early 2023, Farley and his head of financial departmentJohn Lawler was in China when they tested an electric SUV from state automaker Changan Automobile, the Journal reported.
According to the report, the couple was impressed with the quality of the Chinese-made electric vehicles.
“Jim, this is nothing like it used to be,” Lawler told Farley, according to the Journal. “These guys are ahead of us.”
Farley's comments come as Chinese automakers continue to dominate the global EV market. Data collected by technology firm ABI Research for Business Insider shows that Chinese automakers accounted for 88% of the EV market in Brazil and 70% in Thailand in the first quarter of this year.
Competing with rivals like Xiaomi will be crucial for Ford as it formulates its approach to the EV market.
Ford posted a big profit margin in the second quarter of the year, sending the company's stock plummeting. The company's earnings per share came in at $0.47, below analyst estimates of $0.68. Profitability for the quarter was hit by the EV segment, which saw a $1.14 billion loss due to declining demand. Ford's third-quarter results will be released on October 28.
In August, Lawler told reporters that Ford was changing its EV strategy and would instead replace its planned electric SUVs with hybrid models. The measure will cost Ford almost $2 billion.
Ford shares are down nearly 9% year to date.
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