Jim Farley, Ford’s CEO, has taken a rather unusual way to gain insight into this competitive landscape. For six months, he’s been driving a Chinese EV for the past six months. On the “Fully Charged Podcast,” Farley revealed his experience with the Xiaomi Speed Ultra 7.
For many in the auto industry, driving a competitor’s vehicle might seem like an unusual choice. Yet, Farley is not just dabbling in curiosity; he shared his impression of the Xiaomi Speed Ultra 7. The car came directly from Shanghai to Chicago. The CEO has been driving it for six months, expressing a strong desire not to give it up.
This open acknowledgment of his admiration for a rival’s product showcases a level of humility and respect. Although Ford declined to comment on his choice, it’s clear that Farley’s experience with the Xiaomi Speed Ultra 7 has given him a unique perspective.
Xiaomi’s Entry
Xiaomi, a name synonymous with smartphones and smart gadgets, made a bold leap into the automotive sector with the Speed Ultra 7. Launched in March 2024, this sedan is around $30,000, positioning it competitively against models like the Nissan Leaf. Available in three variants—the SU7, SU7 Pro, and SU7 Max—the Max version boasts an impressive range of over 500 miles on a single charge, outpacing even the Tesla Model S’s 400 miles.
Farley’s praise for the Xiaomi vehicle is by the company’s remarkable sales performance, with Farley noting, “They sell 10,000, 20,000 a month. They’re sold out for six months.” This kind of success highlights Xiaomi’s growing influence in the automotive arena, marking it as a formidable player among traditional automakers.
Ford’s CEO Takes Strategic Shift
In response to the rising competition from Chinese manufacturers, Farley has been proactive in reevaluating Ford’s strategy. Two years ago, he established a “Skunk Works”. It’s a team of top engineers to develop a low-cost EV platform, aiming to make Ford more competitive. This shift reflects a broader trend in the industry, with Ford pivoting away from larger, more expensive electric vehicles.
Recently, the company announced the postponement of a three-row electric SUV and the production of a new electric pickup truck. Farley’s openness to collaborating with Chinese automakers underscores the seriousness of the challenge posed by companies like Xiaomi.
Farley’s remarks at a Morgan Stanley event in 2023 made it clear. He views the Chinese market as the main competitor to the U.S. auto industry. “The Chinese will be the powerhouse,” he stated, signaling a shift in focus for American automakers. Realizing the strength of companies like Xiaomi, Farley is not only highlighting the competition but also paving the way for collaboration.
As Ford navigates this rapidly changing landscape, Farley’s experience behind the wheel of a Chinese EV is more than just a personal choice. It’s a strategic move that reflects a deeper understanding of the evolving automotive industry. With EVs rapidly reshaping the market, learning from the competition may just be the key to success.
