Ford’s top honcho has issued a warning that the United States is not ready to fight with China over the production of electric vehicles. The chairman of Ford, Bill Ford, said that the company is now mobilizing all resources to prepare for an influx of imports from abroad. He also mentioned how swiftly the electric vehicle market in China had expanded. Ford asserted that Chinese automakers created electric vehicles quickly and on a massive scale, and are currently offering the vehicles for export.
With international sales of Chinese-made cars increasing threefold from 2020, reaching more than 2.5 million vehicles in 2022, China is on track to overtake Germany as the top exporter of automobiles in the world. Similar to the United Kingdom and other European countries, the United States is preparing for a flood of vehicles built in China.
Through a deal it has negotiated with CATL, a Chinese firm, Ford plans to invest $3.5 billion in the construction of a battery plant in Michigan. Senator Marco Rubio, however, is questioning the Ford-CATL deal, claiming it runs the risk of increasing American dependence on China.
The SAIC-owned MG company already offers electric vehicles made in China for sale in the United Kingdom. Geely, the owner of Lotus and Volvo, and with a share in Aston Martin, is another significant auto manufacturer in China with an export-focused strategy.
The fact that MGs are less expensive than other electric vehicles produced by companies such as Tesla has contributed to their increased appeal, and the company has declared its intentions to boost its sales in the United Kingdom. For example, Tesla’s Model 3 has a starting price of $49,395 while that of the MG ZS is at $38,828.
The automakers in China — BYD, Chery and Funky Cat, a subsidiary of the enormous Great Wall Motor — all intend to export their models to the United Kingdom and around the world. China has a significant advantage over Europe and the United States in terms of manufacturing battery plants, with more than 100 plants already built and an additional 200 plants planned. China also has inexpensive labor and inexpensive raw materials, including steel. As the largest vehicle market across the globe, China is attempting to take advantage of this position by exporting its vehicles.
However, if accessible public chargers are not expanded swiftly and affordably enough to entice car customers who lack access to home chargers, China’s intentions around the world may be thwarted. Also, vehicles that are more expensive compared to gasoline-powered counterparts and require pricey energy provide a bad deal to buyers.
U.S. EV makers such as Lucid Motors (NASDAQ: LCID) now have the task of upping their game if they are to beat China at its own gaming of seeking to dominate the global electric vehicle industry.
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