Rumors are swirling on Wall Street and in Detroit: According to the Financial Times, Ford is said to have held secret talks with Chinese tech giant Xiaomi regarding an EV joint venture in the US.
While both companies vehemently deny it, the evidence of mutual attraction—most notably Jim Farley's love for the Xiaomi SU7—is hard to ignore.
Details
- The report: Citing insiders, the FT reports that Ford is exploring a partnership with Xiaomi to leverage Chinese EV expertise on US soil.
- The denial: Ford called the story "completely false." Xiaomi followed suit, stating it neither sells products in the US nor has current plans to do so.
Farley's "Epiphany"
Ford CEO Jim Farley admitted back in 2024 that he had a Xiaomi SU7 flown to Chicago and drove it for six months. His verdict: "I don't want to give it up." This enthusiasm fuels speculation that Ford is desperately seeking Chinese software know-how.
❝"In the US, our phone companies don't build cars. But in China, Huawei and Xiaomi are in every vehicle. That was a real epiphany for me."
— Jim Farley, CEO Ford
Flashback: The end of the billion-dollar marriage with LG Energy
In December, Ford wrote off $19.5 billion and canceled several EV models. At the same time, LG Energy Solution terminated a $6.5 billion battery supply contract with Ford—citing shifting demand and the policies of the Trump administration.
Takeaway
Ford is in a bind: The company is fascinated by China’s EV lead, but politically, it cannot afford to lean too far East.
The Chairman of the House Select Committee on China, John Moolenaar, already sent Farley a written warning last week against making deals with BYD or CATL.
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