Is Ford Partnering With Xiaomi?
Reports revealed that Ford and Chinese automaker Xiaomi have been talking. Is it true? If so, what does this mean for the automotive industry?
Why is everyone wondering, “is Ford partnering with Xiaomi?” Well, because if it’s possible, then it’d be huge.
Ford is one of America’s biggest automakers. Xiaomi is one of the most successful EV manufacturers in China. While it’s not as big as BYD, it has established its presence by creating some of the fastest EVs in the world, as you can read here.
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(By the way, that’s a sedan we’re talking about.
So, when rumors sparked that the two were in discussions, we had to answer: Is Ford partnering with Xiaomi?
The real answer is that, so far, Ford is denying any participation with the Chinese automaker, as it explained to Electrek.
So, why did the rumor start? It’s no secret that Jim Farley, the CEO of Ford, loves Xiaomi. In fact, he has driven one as a daily driver.
How he got one is a mystery, but he loves it.
Xiaomi has earned the respect of friends and foes for producing some of the best cars, and there’s no denying that something like the SU7 would be successful in the US. Now that it’s not happening, what follows is merely speculation.
However, there’s something to consider: this could open up a segment that automakers haven’t explored before.
Is Ford Partnering With Xiaomi Important?
Many have said that Chinese cars will eventually be a mainstream reality in the US. There’s no denying China’s production capability. However, the Asian giant has never managed to break into America, be it due to political restrictions or a lack of a product fit for American tastes.
Granted, the Lincoln Nautilus is an excellent luxury option, but it never sold in huge numbers.
The thing with Xiaomi is that it’s a different proposal, and it has the clear support of Ford’s CEO.
So, with that said, is Ford partnering with Xiaomi something possible? Right now, no. It’s impossible because Xiaomi can be considered a security threat to America. In fact, other automakers, such as GM, are making massive efforts to bring their operations back to the US, such as with the Buick Envision.
This raises the question of why the Lincoln Nautilus continues to sell in the US.
First of all, Ford’s luxury division doesn’t seem to care about tariffs, as this article explains, and that’s because it’s not a bestseller or a product they depend on.
Starting a deal right now doesn’t make any sense for Ford. There are tensions too large to ignore, and the cost will far outdo the benefit. However, in the future, we shouldn’t rule it out.