Ford Denies EV Partnership Talks with China's Xiaomi

Ford Rejects EV Partnership Report

Ford Motor Company has publicly denied a Financial Times report claiming it held discussions with Chinese electric-vehicle manufacturer Xiaomi about forming a joint venture to produce EVs in the United States. Ford described the report as "completely false," refuting any such partnership talks.

Geopolitical and Industry Pressures

The denial comes amid heightened scrutiny from U.S. lawmakers regarding collaborations between American automakers and Chinese firms. A U.S. House committee recently questioned Ford's CEO about potential ventures with Chinese automaker BYD and its existing technology partnership with battery giant CATL, citing national security and supply chain risks.

Impact on the EV Market

This situation highlights the competitive challenges facing North American automakers, who are recalibrating their EV strategies due to high costs and intense competition from Chinese rivals. Ford itself recently announced significant writedowns and a scaling back of some EV models as it pivots toward more affordable vehicles and hybrids.

Summary

While Ford has firmly refuted the Xiaomi partnership rumor, the incident underscores the sensitive political climate surrounding U.S.-China business dealings in the strategic automotive sector. The industry continues to navigate a complex landscape of market competition and regulatory oversight.

FAQ

Q: Did Ford and Xiaomi discuss an EV joint venture?
A: No, Ford has officially denied the report, stating it is "completely false".

Q: Why are U.S. lawmakers concerned about these partnerships?
A: Concerns center on potential supply chain vulnerabilities and the economic threat posed by Chinese government-backed companies entering the U.S. market.

Source: Investing.com