Ford's Jim Farley Was "Surprised" Following His Inspection of Chinese and Tesla Electric Vehicles | Carscoops

      The teardowns uncovered surprising revelations that compelled Ford to reevaluate its approach to building electric vehicles from the ground up.

      

      By Brad Anderson, 11 hours ago

      Ford discovered that the Mustang Mach-E uses a full mile more wiring than the Tesla Model 3.

      Jim Farley described the teardown of Tesla and various Chinese EVs as “humbling.”

      The rapid advancement of Chinese automakers has left Ford striving to keep up on a global scale.

      Like many established automakers, Ford is facing increasing pressure from Tesla domestically and a rising wave of Chinese manufacturers internationally.

      These newer entrants appear more flexible and often excel in electric vehicle design and software integration, areas where traditional manufacturers like Ford have struggled. CEO Jim Farley openly acknowledges the magnitude of this challenge.

      According to Farley, the threat from Chinese carmakers has surpassed the challenge posed by Japanese manufacturers in the 1980s. He recounted a “shocking” moment that led him to reconsider the company's strategy.

      Farley mentioned that Ford's engineers were surprised during the teardown of both the Tesla Model 3 and several Chinese electric vehicles, realizing how advanced those manufacturers were in terms of cost, efficiency, and software integration.

      “I felt very humbled when we disassembled the first Model 3 Tesla and started examining the Chinese vehicles,” he shared with former Wall Street Journal reporter Monica Langley during the Office Hours: Business Edition podcast. “What we found was shocking.”

      What Ford Discovered Inside

      Ford’s engineers quickly realized that the Mustang Mach-E had an additional mile of electrical wiring compared to the Model 3, which added unnecessary weight and complexity. This revelation, among others, led Farley to establish a dedicated electric vehicle division, Model E, in 2022.

      “EVs are exploding in China,” Farley remarked, emphasizing that the Chinese government has significantly supported battery-powered vehicles.

      “We cannot ignore EVs, not just in the US but globally; I refuse to cede this market to the Chinese,” he stated.

      Financially, the formation of the Model E division has not yet proven profitable, incurring losses of over $5 billion last year. Nonetheless, Farley is not ready to give up.

      “I expected it to be a difficult journey from a business perspective,” he admitted. “My philosophy is to tackle the toughest challenges as quickly as possible, sometimes in public, as it can expedite solutions.”

      If You Can’t Beat Them, Join Them

      Last year, Farley disclosed that he had been driving a Xiaomi SU7 daily and praised the electric sedan. It’s clear he recognizes the importance of addressing the challenge from the Chinese and the urgency for Ford to act swiftly.

      One of the company’s most vital upcoming initiatives is a mid-size electric pickup estimated to cost around $30,000. Built on a new architecture intended for multiple future models, it will serve as the next measure of whether Ford can compete effectively in terms of speed and efficiency.