Ford CEO Warns It Is "Too Late" for Europe Against Chinese Automakers as U.S. Weighs Entry Rules

$F CEO Jim Farley warned that Europe has already lost its battle to fend off Chinese automakers, though the United States still maintains a window to carefully manage their entry. Chinese brands captured a record share of nearly 12% of European new-car sales in August, largely by leveraging plug-in hybrids to bypass tariffs targeting battery-electric vehicles.
The warning surfaces as Ford navigates its own operational ties with Chinese competitors. In July, Ford partnered with Geely to manufacture two electric SUVs at its Valencia plant in Spain starting in 2028, with Ford retaining a two-thirds controlling stake. The structure mirrors a framework Farley reportedly discussed with U.S. officials, under which Chinese automakers would be restricted to domestic production exclusively through joint ventures controlled by American partners.
Meanwhile, federal regulators are adopting structural barriers distinct from Europe's tariff model. A Commerce Department rule is set to prohibit connected vehicles linked to Chinese software or hardware starting in model year 2027, regardless of whether assembly occurs domestically, while U.S. automakers lobby Congress for permanent statutory restrictions before year-end.