Ford, Xiaomi Deny Talks on US EV Joint Venture

Ford and Xiaomi Refute EV Partnership Report

Ford Motor Co. and Chinese electronics giant Xiaomi have both officially denied a report from the Financial Times claiming the two companies were in discussions to form a joint venture for manufacturing electric vehicles in the United States. A Ford spokesperson labeled the report as 'completely false', a sentiment echoed by Xiaomi, which stated it is not negotiating to sell products in the US.

Industry and Political Context

The report surfaces amid heightened concern among US automakers and lawmakers regarding the entry of Chinese government-backed auto companies into the American market. There is significant political scrutiny over potential partnerships, with a US House committee recently questioning Ford's CEO about any plans for a joint venture with Chinese automaker BYD and its existing battery technology partnership with CATL.

Impact on North American EV Strategy

This situation highlights the challenges facing North American automakers, many of whom are scaling back ambitious EV production plans. Faced with intense competition from Chinese rivals and shifting consumer demand, companies like Ford are pivoting towards more affordable models and hybrids. Ford previously announced a $19.5 billion writedown and the discontinuation of several EV models.

Conclusion

While the report of a Ford-Xiaomi partnership has been firmly dismissed, the incident underscores the sensitive political and competitive landscape of the global EV industry. US automakers remain cautious about collaborations with Chinese firms as they navigate market pressures and regulatory oversight.

FAQ

Q: Did Ford and Xiaomi discuss a joint EV venture?
A: No, both Ford and Xiaomi have publicly denied the report, calling it false.

Q: Why are US lawmakers concerned about partnerships with Chinese auto firms?
A: There are concerns about China's potential influence over the auto supply chain and the competitive risk to the domestic US auto industry.

Q: How is the US EV market changing?
A: North American automakers are scaling back their EV investments and shifting focus to cheaper models and hybrids due to strong competition and changing market dynamics.

Source: Reuters via Investing.com