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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →Jim Farley says Ford needs to keep electric vehicles central to its strategy because building the capabilities to compete in future segments matters even when a pure battery-electric model is not the most profitable option today. His answer is a mix of battery EVs, extended-range EVs and hybrids, alongside work to make EVs cheaper and more efficient as Chinese automakers put pressure on the industry.
Why does Farley say EVs still matter to Ford?
Farley’s argument is about Ford’s ability to compete in the vehicle segments that develop next—not a claim that every buyer or every model should switch to a battery EV. In a February 28, 2026 interview with Car and Driver, he argued that Ford could strengthen its competitive position by applying innovation to future segments such as EVs.
He also raised the question of whether concentrating on conventional compact cars would help Ford match Chinese manufacturers. Farley said those companies were assigning their strongest people to lower-cost vehicles that are partially or fully electric. His point is that Ford needs the engineering knowledge and talent to compete in that arena, not simply a larger EV lineup for its own sake.
What powertrains does Ford intend to offer?
Farley says Ford plans to offer battery-electric vehicles, extended-range electric vehicles (EREVs) and hybrids. EREVs use electric drive while including an onboard engine that can generate electricity, while hybrids combine electric and combustion power. The mix gives Ford alternatives for customers and vehicle uses that may not suit a pure battery EV.
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Farley acknowledged that a pure EV may not always be the most profitable choice, but said Ford would offer them anyway. He described the broader mix as a deliberate commitment to compete across powertrains rather than invest only in the options that appear most profitable now.
“So, we will offer people pure EVs, even though maybe that’s not the most profitable answer. We will offer EREVs and hybrids when others just say, ‘We don’t need to spend the money on that stuff.’”
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— Jim Farley, speaking to Car and Driver
What does Farley say Ford learned from Tesla and Chinese automakers?
Engineering efficiency
Farley said Ford had to rethink some early EV engineering choices. Recalling a teardown comparison with Tesla, he said the Mustang Mach-E’s wiring harness was 70 pounds heavier and 1.6 kilometers longer than Tesla’s. Those numbers are Farley’s account of the comparison in the Car and Driver interview, not figures from an independently reported comparative test.
His example illustrates the kind of detailed design work that can affect vehicle cost and efficiency. It does not, by itself, establish a complete comparison of the two companies’ vehicles or engineering capabilities.
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Chinese competitors’ pace
Farley said Chinese automakers and local brands advanced faster than Ford expected. He named BYD, Great Wall and Geely while discussing the competitive field, and emphasized their growing capabilities and focus on low-cost EV development. He said Ford needs different technical know-how to respond.
“These types of talented people are also bringing the innovation that is required to compete against China. And there’s no playbook,” Farley told Car and Driver. That is his assessment of the challenge; the interview does not independently measure the relative performance of Ford and Chinese manufacturers across the market.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How is Ford preparing for possible Chinese entry into the U.S.?
Reuters reported on July 30, 2026, that Farley told Ford employees the company was preparing for the possibility that Chinese automakers could enter the U.S. market in five to ten years. Reuters said Ford leaders considered entry more likely toward the latter part of that window. This is a reported forecast, not a confirmed entry date or a certainty that Chinese brands will enter.
Reuters, citing three people who viewed the employee town hall, also reported that Ford was preparing a family of affordable EVs designed to match Chinese companies on cost and efficiency. Ford declined to comment on the private meeting. The report describes preparation and competitive intent; it does not establish the final specifications, prices, launch dates or availability of those vehicles.
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Does “China dominates” mean Chinese automakers already control the global EV market?
Not on the evidence cited here. The phrase captures the competitive pressure described by Farley and the title’s framing, but the Car and Driver interview and Reuters report do not quantify global EV market share or independently establish that Chinese automakers dominate it. Farley’s comments are a CEO’s assessment of the competitive challenge, while Reuters reports Ford’s planning for a possible future U.S. market entry.
Farley has also argued for broader vehicle choice in the United States, saying, “I feel like we could probably do a better job in America at having more diverse sizes. Americans once appreciated different kinds of cars more than they do today.” His comments connect the EV strategy to a wider question about what kinds of vehicles Ford develops, rather than treating electrification as a single-model decision.
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