- Ford CEO Jim Farley says he’s been driving Chinese tech giant Xiaomi’s EV for the past six months.
- Farley described Xiaomi as an “industry juggernaut”.
- 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 he’s been driving for half of the past year.
“I don’t like to talk about the competition that much, but I drive a Xiaomi,” Farley said while speaking to British host Robert Llewellyn on The Fully Charged Podcast. The podcast, which Llewellyn hosts, aired 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 car. The Chinese tech giant produces three versions of the machine: SU7, SU7 Pro and SU7 Max. Farley did not specify which version he was driving.
“It’s fantastic. They sell 10,000, 20,000 a month. They’re sold out in six months,” Farley said of Xiaomi’s success with the SU7 earlier in the interview.
“You know, this is an industry juggernaut and a consumer brand that is much stronger than the 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 SU7’s popularity has come at a cost to Xiaomi. When Xiaomi reported its second-quarter earnings on August 21, its EV arm posted an adjusted loss of $252 million.
That means Xiaomi lost about $9,200 for each of the 27,307 SU7s it shipped. quarter. The SU7 retails 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 was looking to lower its manufacturing costs by increasing its scale. EV arm.
“In addition, Xiaomi’s first EV is a pure electric sedan, and its investment cost is relatively high, so it will take some time to digest this part of the cost,” the spokesperson told Loh.
An “existential threat”
These are not the first comments Farley or his fellow Ford executives have made about the scale or progress of China’s EV industry.
After visiting China in May, Farley told a Ford board member that China’s auto industry was an “existential threat,” the Wall Street Journal reported in September.
In early 2023, Farley and his chief financial officerJohn Lawler, were in China when they tested an electric SUV made by State-owned automaker Changan Automobile, the Journal reported.
The report said the duo was impressed by the quality of EVs made in China.
“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 electric vehicle market. Data compiled by technology firm ABI Research for Business Insider shows that Chinese automakers accounted for 88% of the electric vehicle market in Brazil and 70% in Thailand in the first quarter of this year.
Competing with rivals such as Xiaomi will be critical for Ford as it formulates its approach to the EV market.
Ford posted a big profit loss in the second quarter of the year, sending the company’s shares tumbling. The company’s earnings per share came in at $0.47, below analysts’ estimates of $0.68. Its profitability for the quarter was weighed down by its EV segment, which saw a loss of $1.14 billion amid slowing demand. Ford’s third quarter earnings are due on October 28.
In August, Lawler told reporters that Ford was changing its EV strategy and would replace its planned electric SUVs with hybrid models. The move will cost Ford nearly $2 billion.
Ford shares are down nearly 9% year to date.