Ford CEO Admits Lag in Affordable EV Competitiveness, Cites BYD's 30% Lower Battery Costs

Ford CEO Jim Farley recently stated that Ford lacks competitiveness in the affordable electric vehicle (EV) segment, with its R&D system lagging approximately 25 years behind the industry and struggling to compete against Chinese automaker BYD. He noted that BYD, through vertical integration across the entire battery supply chain, achieves battery costs roughly 30% lower than Ford’s. To close this gap, Ford plans to redesign the energy efficiency of EV motors, gearboxes, and inverters, aiming to reduce battery pack size by 30% and thereby cut costs. Farley revealed that Ford has already purchased Chinese-made EVs in bulk and air-freighted them to its U.S. headquarters for teardown analysis, focusing specifically on BYD’s supply chain, R&D processes, and overall vehicle cost-control strategies. He urged all Ford employees to acknowledge the competitive strength of China’s new energy vehicle manufacturers. Previously, Farley admitted feeling “shocked and embarrassed” after dissecting both the Tesla Model 3 and Chinese EVs. He also pointed out that current EV sales in the U.S. amount to only one-tenth of those in China, with American automakers—including Tesla, General Motors, and Ford—collectively falling significantly behind their Chinese counterparts in overall competitiveness.