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Ford CEO Jim Farley said Europe is already “too late” to stop Chinese automakers from reshaping its electric-vehicle market. Speaking at an Automotive News conference on September 29, 2026, Farley presented Europe as a warning to the United States—but said Ford will both compete with Chinese companies and partner with them when that lowers costs or fills a capability gap.
What Jim Farley said about Europe and Chinese EVs
Farley urged the United States to be “extremely careful around how the Chinese OEMs come to our country,” citing the pressure Chinese imports are putting on European manufacturers. His blunt assessment of Europe was: “For European countries, it’s too late.”
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The comment describes Farley’s view of Europe’s strategic position, not a finding that every European automaker or every electric-car segment has already been taken over. Reuters treated Europe as his cautionary example for U.S. trade and industrial policy.
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Why Europe is the warning for the United States
Chinese exports are scaling quickly
Reuters reported that China is projected to export around 12 million cars in 2026, compared with around 3 million in 2022. That expansion gives Chinese manufacturers more opportunities to spread development, battery and software costs across global sales.
The United States is currently more insulated
Chinese-made vehicles face a U.S. Chinese-made vehicle-software ban and tariffs exceeding 100%, according to Reuters. Those measures effectively seal the U.S. market against the direct import model that has increased competitive pressure in Europe. Farley’s warning is that policy protection can change, while the underlying cost and technology gap may be harder to close quickly.
Europe saw a rapid increase in Chinese EV share
Associated Press reported Farley’s estimate that Chinese automakers went from almost no European EV market share two years earlier to 10%. That is Farley’s figure as reported by AP, rather than an independently measured market total presented in the conference account.
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What gives Chinese EV makers an advantage
Farley has pointed to cost, development speed and manufacturing scale. AP reported his estimate that a BYD Seagull contains about $9,000 in material costs and roughly $2,000 of crash-test compliance costs—about $11,000 combined. The figure is Farley’s estimate for that model and cost categories; it is not a retail price or a complete cost-of-ownership calculation.
Chinese companies also have established battery supply relationships and experience developing vehicles for multiple powertrains and markets. Those advantages can shorten the path from a product decision to a competitive vehicle, while legacy automakers are carrying older factories, dealer structures and product programs alongside their EV investments.
Ford’s own European position has weakened
Ford’s European performance helps explain Farley’s urgency. Ford Authority reported August 2026 sales of 16,637 vehicles, down from 19,823 a year earlier. That 16.1% decline came while the overall market rose 5.3%, reducing Ford’s share from 2.9% to 2.3%.
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AP reported that Ford’s European sales have fallen from more than 1 million vehicles a decade ago to fewer than 500,000 last year. At Ford’s Valencia plant in Spain, production was below 100,000 vehicles in 2025 despite annual capacity of 500,000. These figures describe Ford’s exposure; they do not establish that Chinese brands have captured all of the volume lost by Ford.
Ford is partnering with the companies it is warning about
Ford’s strategy combines selective cooperation with direct competition. Reuters reported that Ford partners with CATL on lower-cost batteries and agreed in July to jointly develop European electric cars with Geely.
Farley explained the logic during an April earnings call: “We leverage global partnerships and even IP (intellectual property) sharing, including with the Chinese (companies), to grow our business around the world.” He said Ford wants “the rights to win around the globe.” In practice, that means using Chinese expertise or supply-chain economics where Ford lacks an efficient alternative, while keeping Ford-branded products and competing for customers.
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What is planned for Ford’s Valencia plant?
AP reported a proposed Ford-Geely joint venture for Valencia, pending regulatory approval. The reported ownership split is two-thirds Ford and one-third Geely. The plan covers five vehicles and sets out production targets through 2028:
| Planned vehicle or program | Reported timing and detail |
|---|---|
| Ford Kuga plug-in hybrid | Continued production at Valencia |
| Ford Bronco | New production planned from 2028 |
| Two Geely electric SUVs | Planned from 2028 |
| Jointly developed “multi-energy” crossover | Targeted for 2028 |
The 2028 dates are plans, not delivered vehicles, and the venture still required regulatory approval in the AP account. The arrangement could improve factory utilization and give Ford access to Geely technology and scale. It also creates dependence on a partner that Ford expects to challenge in the market.
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What “Europe is lost” does—and does not—mean
Farley’s phrase is best read as a warning about the speed of competitive change. Europe may be too late to prevent Chinese companies from becoming durable competitors, especially if local manufacturers cannot match their cost, battery and software economics soon. It does not prove that European brands will disappear, that Chinese vehicles will dominate every country, or that all European EV sales now belong to Chinese companies.
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The 10% figure is Farley’s reported estimate of Chinese EV share, while Ford’s sales figures show a separate company-specific decline. Keeping those measures distinct matters: a growing Chinese presence can pressure legacy automakers without translating into a single, uniform market outcome.
What to watch next
- Whether the proposed Ford-Geely Valencia venture receives regulatory approval.
- Whether the planned 2028 vehicles reach production on schedule.
- How European tariffs, local-content rules and software restrictions affect imported and locally built Chinese cars.
- Whether Ford’s CATL and Geely relationships reduce vehicle costs enough to improve its European share.
- How quickly Chinese manufacturers expand beyond price-sensitive EV segments into broader European categories.
For U.S. policymakers, Farley’s message is that blocking imports can buy time but not automatically create competitive products. For Ford, the response is a high-risk combination: borrow capabilities and lower costs through partnerships, then compete against the same companies with Ford vehicles.
Frequently Asked Questions
When did Jim Farley say Europe was “too late” against Chinese EVs?
He made the remark at an Automotive News conference on September 29, 2026.
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How much of Europe’s EV market do Chinese automakers have?
Associated Press reported Farley’s estimate that their share had risen from almost none two years earlier to 10%. The figure is Farley’s estimate, not an independently measured total cited in the conference report.
Is Ford working with Chinese automakers?
Yes. Ford partners with CATL on lower-cost batteries and has proposed a Ford-Geely Valencia venture, while Farley says Ford will also compete directly with Chinese companies.
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