Latest news with #JimFarley
Yahoo
12 hours ago
- Automotive
- Yahoo
Ford CEO Jim Farley says Waymo's approach to self-driving makes more sense than Tesla's
Ford CEO Jim Farley expressed skepticism about the technological approach to self-driving cars being pursued by Tesla, citing consumer 'trust' and the need to 'be really careful' as reasons why Ford sees more potential in systems based on laser sensors like those in Waymo vehicles. The comments are the latest indication of the auto industry's resistance to Tesla CEO Elon Musk's vision of less expensive self-driving vehicles that use only video cameras and artificial intelligence — a bet Musk believes will ultimately pay off and prompt other automakers to license Tesla's technology. But Ford, the number three automaker in the U.S., which plans to work with partners to incorporate self-driving technology into its future vehicles, does not seem likely to license Tesla's tech anytime soon, based on Farley's comments on Friday. 'When you have a brand like Ford, when there's a new technology, you have to be really careful,' Farley said at the Aspen Ideas Festival on Friday. 'We really believe that LiDAR is mission critical,' Farley said, referring to the laser sensors used by companies like Waymo. Farley was being interviewed by Walter Isaacson, who published a biography on Elon Musk in 2023. When their conversation turned to autonomy, Isaacson asked Farley to compare both Waymo and Tesla's systems, and he asked which approach made more sense. 'To us, Waymo,' Farley said. He pointed out that both Waymo, owned by Google-parent Alphabet, and Tesla 'have made a lot of progress' on self-driving, and Farley acknowledged that he has had conversations with Elon Musk. But he stated that Ford considered LiDAR to be an important part of the picture, noting that 'where the camera will be completely blinded, the LiDAR system will see exactly what's in front of you.' Tesla, which recently launched its robotaxi service in Austin—with safety riders in the front seat—has famously taken a 'camera-only' approach to its autonomous technology, meaning that it doesn't use radar or LiDAR technology to 'see' the environment around the car. This approach has drawn scrutiny across the industry from people who question whether it is as safe without the redundancies, even as Musk argues that it's more economical and performs just as well 'The issue with Waymo's cars is it costs way more money,' Musk said during Tesla's quarterly earnings call in April. 'The car is very expensive, made in low volume. Teslas probably cost 25% or 20% of what a Waymo costs and made in very high volume.' Ford has said it plans to partner with a self-driving software company once the technology is farther along. While the company had spent $1 billion pursuing its own joint venture with Volkswagen, called Argo AI, Ford stopped funding the effort in 2022 and decided to pursue a partnership model. In the meantime, the company has shifted attention to its 'BlueCruise' technology, a so-called Level 2 self-driving system that allows drivers to take their hands off the wheel on the highway but requires full attention. Ford is still working on developing a more advanced system, which will allow drivers to not pay attention during certain times on the highway—but it has said it no longer has intentions to build a fully autonomous, Level 4 system, only plans to partner with other companies who have. 'We decided, as a company, that a cooler problem than full autonomy in an urban setting was high speed, eyes off. Push a button and read a book in your car,' Farley said. This story was originally featured on
The Sun
14 hours ago
- Automotive
- The Sun
Rare earth magnet flow eases auto shutdown fears
BEIJING: The threat of mass shutdowns across the automotive supply chain is fading as Chinese rare earth magnets begin to flow, though automakers and suppliers say production plans still face uncertainties and a continued risk of shortages. European suppliers have received enough licences to avoid the widespread disruptions predicted earlier this month but hundreds of permits remain pending, said Nils Poel, head of market affairs at supplier association CLEPA. The rate of issuance is "accelerating" and has risen to 60% from 25%, he said, but cases where the end users are based in the United States, or where products move through third countries like India, are taking longer or not being prioritised. "Overall the feeling is that we probably will still have production in July and that the impact will be manageable," he said. "Maybe here and there a production line will be affected, but we have avoided that for the moment." On Friday, Ford CEO Jim Farley said during an appearance in Colorado that the company has had to shut down factories over the past three weeks because of magnet shortages, without elaborating. Volkswagen said in a statement to Reuters its supply of rare earth components was stable while rival Stellantis said it had addressed its immediate production concerns. China restricted exports of seven rare earths and related magnets in April in retaliation for U.S. tariffs. Three months later there remains huge uncertainty about how it intends to police its opaque and complex export licensing system. Since the restrictions were imposed, rare earth magnet exports from China have fallen roughly 75%, forcing some automaker production lines to halt in Asia, Europe and the United States. FROM 'FULL PANIC' TO 'BARE MINIMUM' The White House said on Thursday it had signed a deal with China to speed up rare earth approvals without providing details. Beijing said hours later both parties had confirmed details of the deal struck in London earlier this month, which was meant to resolve the rare earth issue, and it would process export licences in accordance with the law. Neither party detailed any changes to the existing export licensing system. U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business Network on Friday that, under the agreement announced on Thursday, rare earth shipments to the United States from China would be expedited to all companies that have previously received them on a regular basis. "I am confident now... the magnets will flow," Bessent said. "This is a de-escalation." Two weeks ago the car industry was in a "full panic," but licence approvals by China have sped up and there is now less threat of a sudden stop, according to an executive at a leading U.S. automotive supplier and a source with knowledge of the supply chain at a major European carmaker. Both asked not to be named because of the sensitivity of the issue. China is approving the "bare minimum" of critical licences for European firms to avoid production stoppages, a European official told Reuters, also speaking on condition of anonymity. U.S. magnet maker Dexter Magnetic Technologies, which has defence clients, among others, has received just five of 180 licences since April, CEO Kash Mishra told Reuters, adding those were intended for non-defence sectors. "It's an extended delay," he said. "It's 45 days trying to get the paperwork right for the supplier, and then it's 45 more days or so before any licences are granted."
The Sun
14 hours ago
- Automotive
- The Sun
China's rare earths are flowing again, but not freely
BEIJING: The threat of mass shutdowns across the automotive supply chain is fading as Chinese rare earth magnets begin to flow, though automakers and suppliers say production plans still face uncertainties and a continued risk of shortages. European suppliers have received enough licences to avoid the widespread disruptions predicted earlier this month but hundreds of permits remain pending, said Nils Poel, head of market affairs at supplier association CLEPA. The rate of issuance is "accelerating" and has risen to 60% from 25%, he said, but cases where the end users are based in the United States, or where products move through third countries like India, are taking longer or not being prioritised. "Overall the feeling is that we probably will still have production in July and that the impact will be manageable," he said. "Maybe here and there a production line will be affected, but we have avoided that for the moment." On Friday, Ford CEO Jim Farley said during an appearance in Colorado that the company has had to shut down factories over the past three weeks because of magnet shortages, without elaborating. Volkswagen said in a statement to Reuters its supply of rare earth components was stable while rival Stellantis said it had addressed its immediate production concerns. China restricted exports of seven rare earths and related magnets in April in retaliation for U.S. tariffs. Three months later there remains huge uncertainty about how it intends to police its opaque and complex export licensing system. Since the restrictions were imposed, rare earth magnet exports from China have fallen roughly 75%, forcing some automaker production lines to halt in Asia, Europe and the United States. FROM 'FULL PANIC' TO 'BARE MINIMUM' The White House said on Thursday it had signed a deal with China to speed up rare earth approvals without providing details. Beijing said hours later both parties had confirmed details of the deal struck in London earlier this month, which was meant to resolve the rare earth issue, and it would process export licences in accordance with the law. Neither party detailed any changes to the existing export licensing system. U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business Network on Friday that, under the agreement announced on Thursday, rare earth shipments to the United States from China would be expedited to all companies that have previously received them on a regular basis. "I am confident now... the magnets will flow," Bessent said. "This is a de-escalation." Two weeks ago the car industry was in a "full panic," but licence approvals by China have sped up and there is now less threat of a sudden stop, according to an executive at a leading U.S. automotive supplier and a source with knowledge of the supply chain at a major European carmaker. Both asked not to be named because of the sensitivity of the issue. China is approving the "bare minimum" of critical licences for European firms to avoid production stoppages, a European official told Reuters, also speaking on condition of anonymity. U.S. magnet maker Dexter Magnetic Technologies, which has defence clients, among others, has received just five of 180 licences since April, CEO Kash Mishra told Reuters, adding those were intended for non-defence sectors. "It's an extended delay," he said. "It's 45 days trying to get the paperwork right for the supplier, and then it's 45 more days or so before any licences are granted."
Bloomberg
19 hours ago
- Automotive
- Bloomberg
Ford Forced to Idle Multiple US Plants on China Magnet Shortage
Ford Motor Co. temporarily idled factories in the US over the last three weeks due to a shortage of magnets containing rare earth minerals, key components embroiled in US trade tensions with China. Chief Executive Officer Jim Farley said the situation demonstrates the need to develop a domestic supply chain for critical auto components. China has instituted a new approval process for exports of rare earths that has slowed supply lines.
New York Post
a day ago
- Automotive
- New York Post
Chinese customers snapping up this Tesla rival's new SUV in bad sign for Elon Musk
Exceptionally strong initial orders for Xiaomi's YU7 electric sport utility vehicle sent shares in the automotive newcomer to a record high on Friday and fanned speculation that Tesla may have to cut prices to fight back. In the first 18 hours after the YU7 went on sale, Xiaomi received some 240,000 orders that it considers locked in, with buyers having paid either a hefty deposit for ready-to-deliver cars or a smaller deposit for cars still to be made. The smartphone and appliance maker made a huge splash in China's electric vehicle market with the launch of its first vehicle, the SU7 sedan, in March last year. The car has outsold Tesla's Model 3 in China on a monthly basis since December and has even earned a rave review from Ford CEO Jim Farley. 4 In the first 18 hours after the YU7 went on sale, Xiaomi received some 240,000 orders, with buyers having paid either a hefty deposit for ready-to-deliver cars or a smaller deposit for cars still to be made. CEO Lei Jun, above. AFP via Getty Images The YU7 is only its second model and priced from 253,500 yuan ($35,360), it undercuts Tesla's Model Y by nearly 4%. That will likely lead to more market share loss for the US automaker, analysts said. At one Xiaomi car showroom in Beijing, dozens of people were gathered around the YU7. Otto Shi, a 26-year-old Tesla Model Y owner who works in finance, said he was considering getting a YU7 for his father who currently drives a Mercedes-Benz. 'We could take turns to drive the Model Y and YU7,' he said, adding that he was impressed by Xiaomi's prowess in supply chains and the SU7's success had made him believe Xiaomi is the ideal Chinese brand to switch to. Xiaomi's shares shot 8% higher in early trade to an all-time high but later pared gains to close up 3.6%. They have risen by more than 70% so far this year to value the company at roughly $190 billion, making it the best performing large-cap stock in Asia Pacific, according to LSEG data. 4 Xiaomi shares have risen by more than 70% so far this year to value the company at roughly $190 billion. AFP via Getty Images What can Tesla do? As domestic rivals increasingly win over Chinese consumers with snazzy new features, Tesla's share of the Chinese EV market has fallen from a peak of 15% in 2020 to 10% last year and then again to 7.6% for the first five months of 2025. Citi analysts said in a note to clients that it may have to cut prices further, offer its 'Full Self-Driving' (FSD) driver assistance software for free and offer more financing incentives if it is to compete successfully with Xiaomi. Tesla, which counts China as its biggest market according to first-quarter sales numbers, did not immediately respond to a request for comment. Last year, China accounted for roughly a fifth of its revenue. 4 Analysts said Elon Musk's Tesla may have to cut prices further, offer its 'Full Self-Driving' (FSD) driver assistance software for free and offer more financing incentives if it is to compete successfully with Xiaomi. AFP via Getty Images While Xiaomi CEO Lei Jun acknowledged that Tesla's driving assistance software was superior, he touted a range of other features where he said the YU7 outperformed the Model Y. The YU7's base model is equipped with a 96.3 kWh battery pack, offering a driving range of up to 835 km (519 miles) on a single charge and supporting high-power fast charging. That compares with a maximum range of 719 km for the redesigned Tesla Model Y, which uses a smaller 78.4 kWh battery. 4 The YU7's base model is equipped with a 96.3 kWh battery pack, offering a driving range of up to 519 miles on a single charge and supporting high-power fast charging. Its backseats have drawers for storage under them and the YU7's driver assistance software comes at no extra charge while Tesla charges 64,000 yuan for its smart driving software, he added. On Thursday night, Xiaomi said it had received 289,000 orders for the YU7 in the first hour after it went on sale, more than three times the level for its SU7 when it launched. Lei has said, however, that a portion of orders was likely being placed by scalpers. On Chinese secondhand platform Xianyu, there were hundreds of people on Friday looking to sell their position in the order queue to others. Aiming to mitigate such scalping, Xiaomi is now limiting each customer to purchasing two cars at most.
