Ford's CEO sounded the alarm again on China. Here are 3 ways Chinese EVs drastically differ from their US rivals.
Asked about the rapid growth of Chinese electric car companies like BYD at the Aspen Ideas Festival, Ford CEO Jim Farley called it "the most humbling thing I have ever seen."
The boss of the Detroit automaker described the cost and quality of the electric vehicles coming out of China as "far superior" to those in the West, adding that they posed an existential threat to Ford and the US auto industry.
"We are in a global competition with China, and it's not just EVs. And if we lose this, we do not have a future Ford," Farley said.
It's not the first time the Ford CEO — who was so impressed by Xiaomi's SU7 sedan he flew one over to the US — has sung the praises of China's affordable, high-tech electric cars.
Unlike Farley, US drivers have little chance of getting behind the wheel of a BYD or Xiaomi, thanks to high tariffs on Chinese EVs. Here's what they're missing out on:
Affordability and variety
EV sales in China have far outpaced those in the US. Almost half of new car sales in the country last year were electric, compared just 10% in the US, according to the International Energy Agency.
As Farley noted, consumers in China have a far greater range of high-quality electric models to choose from than those in the US, and they often don't need to break the bank either.
The average price of an EV in the US in May was around $57,000, according to Cox Automotive, with the $32,000 Nissan Leaf the cheapest model on the market.
By contrast, the average price of an electric car in China was around $31,500 as of December, with best-selling models like the BYD Seagull selling for under $10,000.
"Chinese and US EVs are currently in a very different place," said Will Roberts, head of automotive research for battery and EV consultancy Rho Motion.
"China has an incredibly broad range of EVs catering to the needs of the entire market, while the development of EVs for many popular manufacturers in the US is still at a comparatively early stage," Roberts said, adding that Western markets often underestimate the quality of vehicle products and manufacturing in China.
Software superiority
Many of China's biggest car companies have their roots in the tech world. Tesla rival BYD started out manufacturing cell phone batteries, and EV startup Xpeng dabbles in flying cars and humanoid robots.
As a result, China's EVs are packed with futuristic tech, with features such as autonomous driving, voice recognition, and in-car AI assistants often coming as standard.
While , its Chinese rivals, Huawei and Xiaomi, have entered the EV industry.
Xiaomi's second car, the YU7 SUV, amassed over 200,000 orders in three minutes when it launched last week, and Farley specifically praised the two companies for leveraging their smartphone and consumer tech ecosystem to build a unique software experience.
"They have far superior in-vehicle technology. Huawei and Xiaomi are in every car," Farley added. "You get in, you don't have to pair your phone. Automatically, your whole digital life is mirrored in the car."
"Legacy auto is going from analog to digital, and EV companies in China have started in digital, live in digital, so this is second nature to them," Tu Le, managing director of Sino Auto Insights, told BI.
He said that many EV startups in China have prioritized developing their own tech stacks rather than relying on third-party software and technology.
"Companies like Nio and Xpeng, they want to create the stack and develop and code the software themselves. So, it's a much more seamless experience," Tu Le added.
At Aspen, Farley said that US automakers were limited in their ability to offer features such as phone mirroring because tech giants such as Google and Apple "decided not to go into the car business."
But Tu Le said competing with China's high-tech upstarts on software would require the Detroit automakers to undertake a cultural overhaul.
"They would need to disrupt themselves, on a department-by-department level," he said.
Supply chain stranglehold
At the heart of China's cost advantage lies its effective stranglehold over crucial EV components such as batteries.
The Asian superpower produces nearly all of the world's Lithium Iron Phosphate (LFP) electric vehicle batteries, and Ford, Tesla, and Toyota have all sourced their EV power packs from Chinese battery giants CATL and BYD.
Other crucial automotive supply chains, such as rare earth magnets, are overwhelmingly centred on China, allowing local EV giants to build the vast majority of parts in-house and drive down costs.
Attempts by Western automakers to catch up have been mixed.
Ford and Tesla are building new battery plants in Michigan and Nevada to lower costs, but Ford is planning to license designs for the batteries being built there from CATL.
Tu Le said the West had a long way to go before it could even come close to competing with China in manufacturing key EV components such as batteries.
"We want to be competitive, we want to be in the same room. We're not even in the same building right now," he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
NIO (NIO) Sees 25% Q2 Delivery Surge; Investors Hope It's More Than a One-Off
NIO (NIO, Financials) just turned in its best quarter in a while; and while the stock barely budged, long-term bulls have a reason to feel a little lighter. The Chinese EV maker said it delivered 24,925 vehicles in June a 17.5% jump from the same month last year. Stack that onto Q2 totals, and deliveries are now up more than 25% year over year; no small feat given the price wars still raging across China's EV landscape. Warning! GuruFocus has detected 3 Warning Signs with NIO. The breakdown tells a story of expansion. NIO's flagship premium line delivered 14,593 vehicles; ONVO its newer, family-first sub-brand added 6,400 units; and the final 3,932 vehicles came from other models across the lineup. It's no longer just about luxury sedans; NIO's aiming for driveways beyond downtown Beijing and Shanghai and it's starting to show. Still, the market didn't celebrate; shares were flat in early trading. That's probably less about the numbers and more about the bigger picture; Chinese EV stocks are under pressure, and sentiment's been shaky for months. Even with a solid quarter, investors are watching macro trends; not just monthly stats. Behind the delivery beat is a company that's been quietly pushing through a gauntlet chip shortages; battery cost swings; tightening margins; and aggressive discounting from bigger rivals like BYD and Tesla. Despite that, NIO has managed to maintain volume growth; and that's not just luck it's execution. But volume doesn't pay the bills margins do. And for NIO, margins are still under fire; especially as it tries to scale battery swap stations and double down on software integration. These are bold bets; necessary ones perhaps but costly all the same. Whether these investments pay off depends on what happens in the back half of the year; Q2 was strong, but the follow-through matters more. Subsidy shifts from Beijing haven't helped either; with policymakers now favoring strategic tech over blanket EV support, companies like NIO have to prove they belong on the winner's list not just the participation chart. That's the backdrop heading into Q3; a decent quarter on paper, yes but one that demands careful reading between the lines. Growth is holding; but costs, competition, and consumer fatigue are all pressing in. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Toyota Rumored To Be Working On Plug-In Hybrid Pickup Truck
Toyota Rumored To Be Working On Plug-In Hybrid Pickup Truck originally appeared on Autoblog. Hybrid pickups have become increasingly popular in recent years, with Ford and Toyota leading the way in the U.S. However, these have been conventional hybrids that can't be plugged in. It seems that plug-in hybrid systems - which add a lot more weight and complexity - are not yet considered a good fit for pickups. That could be set to change over at Toyota, with a report from Japanese magazine Best Car indicating that a PHEV version of the Hilux pickup could be sold when the new one arrives in March next year. While America has the Tacoma, the Hilux is Toyota's mid-size pickup in other markets, so could a Tacoma PHEV be on its way here too? Based on a Drive report, Best Car suggests that the plug-in hybrid Hilux will appear alongside the diesel variant in March next year. No technical details were shared, so it's unknown what this hybrid pickup's battery capacity or all-electric range could be. It would be a far cry from any other Hilux, as Toyota has so far only gone as far as installing a 48-volt mild hybrid system in the pickup. In America, Toyota's midsize Tacoma can be ordered with a non-plug-in hybrid powertrain known as the i-Force Max. Producing 326 horsepower and 465 lb-ft of torque, it has a lot of power, but its efficiency of 23 mpg is good rather than remarkable, and merely matches that of certain non-hybrid Tacomas. According to an article from CNBC in May, Toyota plans to increase PHEV sales volumes in the USA from 2.4% last year to 20% by 2030, as the brand continues prioritizing hybrids over EVs in this market. 'We are going to grow our PHEV volume through the lineup over the next few years,' David Christ, head of the Toyota brand in North America, told CNBC at the time. 'We love the PHEV powertrain. We're working to increase, perpetually increase, the amount of miles you can drive on EV-only range.' While that statement doesn't guarantee there'll be a Tacoma PHEV, Christ didn't rule out any particular segment of body style, either. Toyota has experience with smaller PHEVs like the RAV4 and Prius, but the Tacoma is a much larger, heavier vehicle, so may require an all-new engine. Then again, the 2026 RAV4 PHEV makes 320 hp, so it's not lacking in power. If the rumors hold and the Hilux PHEV succeeds in markets like Australia, this could encourage Toyota to work on getting a Tacoma PHEV developed. Ford already sells a Ranger PHEV elsewhere, so this could make for a spicy tussle at some point in the future, should both automakers release such models here. Toyota Rumored To Be Working On Plug-In Hybrid Pickup Truck first appeared on Autoblog on Jul 4, 2025 This story was originally reported by Autoblog on Jul 4, 2025, where it first appeared.
Motor Trend
6 hours ago
- Motor Trend
How the Plymouth Barracuda Became a Mopar Muscle Car Legend
If you ask your average gearhead what the original pony car is, they'll likely point to the Mustang. Ford introduced its groundbreaking two-door to the general public at the New York World's Fair on April 17, 1964, and it was an immediate success. Sporting a long hood, short rear deck, and air of European sophistication, the Mustang would become the segment's standard-bearer. But the first pony car out of the corral was actually a Mopar. The Plymouth Barracuda, debuting before the Mustang in 1964, evolved from a Valiant-based model to a muscle car icon. Its high-performance era peaked with the third-generation 'Cuda, featuring potent V-8s. Today, these models, especially the Hemi 'Cuda, are highly coveted collectibles. This summary was generated by AI using content from this MotorTrend article Read Next Although the Barracuda would later go one to become an icon of muscle car design and performance, its origins are even humbler than Ford's Falcon-based 2+2. Unveiled on April 1, 1964, the Barracuda was Plymouth's attempt to launch a preemptive strike against Ford's upcoming sporty compact. Using a similar development tactic to keep costs down and fast-track the model into production, designers turned their attention to the Valiant, Plymouth's unassuming A-Body-based economy car, for the new model's foundation and injected some youthful exuberance into the proceedings by way of a fastback roofline and a newly available small-block V-8. The Barracuda ultimately didn't take the world by storm in the way that the Mustang did, but Plymouth's pony car did manage to leave an indelible mark on automotive history during its 10-year production run. High-Performance Makeover The '64 Barracuda did little to hide its Valiant underpinnings. Not only did it share its wheelbase and powertrain options, along with most of its bodywork and glass, but the fastback also even wore the Valiant's 'V' badge on its rear deck. Nevertheless, the Barracuda's performance intentions were cause for celebration. MotorTrend put Plymouth's new sporty compact on the cover for our May '64 issue, consigning the Mustang to a small blurb in the corner. The 1964 Barracuda's base 170-cubic-inch, 101-hp inline-six didn't get hearts racing, and the optional 145-hp 225-cubic-inch version of Mopar's slant-six didn't do much to move the needle, either, but Chrysler's all-new, 273-cubic-inch V-8 showed promise. While the small-block's 180 hp was quickly eclipsed by Ford's new 289-cubic-inch small-block V-8, the Barracuda's available A-833 four-speed manual transmission with a Hurst shift linkage gave performance enthusiasts something to get excited about. A three-speed TorqueFlite automatic transmission was also offered. The following year, Plymouth introduced the Commando version of the 273-cubic-inch V-8, which benefited from a more aggressive camshaft profile, a 10.5:1 compression, and a four-barrel carburetor that bumped output to 235 horsepower and 280 lb-ft of torque. For the 1965 model year, Plymouth also unveiled the Formula S package, which included a performance-tuned suspension, larger wheels and tires, and a tachometer, all of which helped the Barracuda become a more legitimate contender in the rapidly evolving performance car landscape of the mid-1960s. During testing at Riverside Raceway in October 1964, Hot Rod clocked a 0–60-mph sprint in 8.0 seconds on the way to a 16.1 second quarter mile in a V-8-powered Barracuda Formula S outfitted with a four-speed and a limited-slip rear differential with 3.55 gears. By 1966, the Barracuda's largely Valiant-sourced interior was starting to develop a personality of its own thanks to a new instrument panel and more performance-oriented features. But it was still a more utilitarian affair than the Mustang and Chevrolet's upcoming Camaro, the latter making its debut in the fall of that year. Plymouth countered by launching the redesigned second-generation Barracuda for 1967, which boasted a longer 108-inch wheelbase and more aggressive, model-specific bodywork. Now available in fastback, notchback coupe, and convertible configurations, the second-generation Barracuda leaned further into the burgeoning muscle car craze with the availability of a new 280-hp 383-cubic-inch big-block V-8 and a wide range of high-performance hardware. No less than four high-performance V-8s were available on the option sheet by the end of the second-generation Barracuda's production run in 1969, including a 440-cube 'Super Commando' big-block V-8 dishing out 375 hp and 480 lb-ft of torque. But the best was still yet to come. A Whole New Ballgame The Barracuda received a comprehensive redesign for 1970. Now underpinned by Chrysler's new E-Body platform, which it shared with the all-new, slightly larger Dodge Challenger, the Barracuda abandoned its Valiant roots in favor of a wider and longer architecture that allowed for a purposeful muscle car stance and a head-turning design. Available in coupe or convertible form, the third-generation Barracuda could still be had with one of two inline-six engines or one of four V-8s that ranged from a 318-cubic-inch small-block to a 383-cube big-block. 1970 also marked the introduction of the 'Cuda. Derived from an options package offered the year prior, 'Cuda became the marketing nomenclature for high-performance iterations of Barracuda. The standard 'Cuda powerplant was the 335-hp 383-cubic-inch big-block V-8, while a hopped-up version of the 340-cube small-block V-8, the 375-hp Super Commando big-block 440 V-8, a 390-hp 440 'Six Barrel' V-8, and the 425-hp, 426-cubic-inch Hemi V-8 were also on the menu. In an instrumented test for the May 1970 issue of MotorTrend , the Hemi-powered 'Cuda reached 60 mph from rest in 5.8 seconds on the way to a 14.0-second quarter mile. A range of Chrysler's High Impact Paint colors like Lime Light green and Vitamin C orange were also made available on the new Barracuda, along with bold graphics packages and a shaker hood option, all of which enhanced the model's appeal to performance enthusiasts. While it was still low on creature comforts, the third-generation car featured a significantly more performance-oriented cabin than its predecessor, typified by a no-nonsense gauge cluster and a Pistol Grip shifter on four-speed-equipped models. For 1971, the Barracuda received a new grille, revised taillights, new seats, and other minor updates. It was also the only year that the Barracuda was equipped with four headlights. Power was down slightly from the year prior, but with the exception of the six-barrel 340ci small-block V-8 (which bowed out after a single model year), the engine options largely carried over from 1970. For 1972, the Barracuda returned to the two-headlight configuration with a revised grille, while four circular taillights were outfitted at the rear. This exterior design would stay mostly unchanged for the rest of the Barracuda's time in production. As with other models throughout the automotive industry, the Barracuda's performance began to steadily decline during this time, as an array of factors ranging from emissions regulations to higher fuel prices conspired to bring the muscle car era to a close. A redesigned Barracuda was planned for 1975 but never made it to showrooms. The All-American Racer Inspired by Dan Gurney's All-American Racers Plymouth 'Cudas that competed in the SCCA's Trans Am road-racing series at the time, Plymouth added an AAR 'Cuda package to the options sheet for 1970. The homologation special included strobe side stripes, a matte black fiberglass hood, body-colored side mirrors and bumpers, side-exit exhaust, a ducktail rear spoiler, and unique suspension tuning. Under the hood was a high-winding, 340-cubic-inch small-block V-8 outfitted with a trio of two-barrel carburetors mounted on top of an Edelbrock aluminum intake. The combination produced 290 horsepower and 350 lb-ft of torque, and it could be paired with either an A833 four-speed manual gearbox or a three-speed TorqueFlite automatic. In total, 2,724 examples of the 1970 AAR 'Cuda were built. A 1971 AAR 'Cuda was planned but never produced, making this a one-year model. A Mopar Performance Icon The third-generation Plymouth Barracuda stands as one of the greatest automotive designs of all time, and these cars have been featured in countless movies, television shows, and music videos as a result. The 1970–1974 cars are sought-after commodities regardless of original specification or condition. High-performance models fetch a substantial premium of their own, but original Hemi 'Cudas are on an entirely different level. First- and second-generation Barracudas are far more accessible, though the prices of restored or well-kept Formula S models can still command hefty sums at auction. The Plymouth brand closed its doors in 2001, so it's unlikely we'll see a revival of this nameplate any time soon. But the automaker produced more than 350,000 examples of the Barracuda in total, so while this pony car's legacy isn't as extensive as the Ford Mustang's, those with the means shouldn't have a hard time finding one to put in their driveway. Plymouth Barracuda Highlights The 1964 Plymouth Barracuda was the first pony car, debuting 16 days before Ford's Mustang. The first- and second-generation models were based on the A-Body Valiant. The introduction of the Formula S package in 1965 gave the Barracuda a much-needed dose of excitement. Performance ramped up substantially with the debut of the second-generation car in 1967 with the availability of big-block V-8s and an array of go-fast options. Debuting for the 1970 model year, the third-generation Barracuda moved from the A-Body platform to the E-Body, an architecture it shared only with the then-new Dodge Challenger. The Barracuda name was used for garden-variety third-generation models, while the high-performance offerings were marketed as 'Cudas. The one-year-only AAR 'Cuda was a corner-carving homologation special in the same vein as the Mustang Boss 302 and Camaro Z/28. Third-generation Barracudas are highly sought after today; original Hemi 'Cuda convertibles can fetch prices that venture into seven-figure territory at auction.
