Ford’s Chief Executive Officer, Jim Farley, has drawn a striking historical parallel between the current intensifying rivalry between the United States and China in the automotive sector—particularly in the electric vehicle (EV) arena—and the fierce competition that once defined the economic clash between the U.S. and Japan during the 1980s. Yet, according to Farley, what is unfolding today is a much more formidable challenge, vastly accelerated by technological sophistication, scale, and strategic ambition. In an interview aired on October 26 on “CBS Sunday Morning,” Farley described the situation vividly: he asserted that the competitive landscape confronting American automakers now is “essentially the same thing” as that earlier confrontation, but operating, as he put it, “on steroids.”

Elaborating further, Farley emphasized the magnitude of the threat, pointing out that China’s manufacturing ecosystem possesses an almost unparalleled production capacity. In his words, the sheer scale of China’s existing automotive infrastructure enables it to produce enough vehicles to satisfy the entire North American market—potentially displacing established American car manufacturers and endangering the livelihood of iconic companies such as Ford and General Motors. Japan, by contrast, never held the same degree of manufacturing dominance or capacity during the 1980s, which makes today’s scenario considerably more precarious for the U.S. auto industry. Consequently, as Farley noted, the current environment represents a fundamentally elevated level of risk that U.S. automakers must navigate with strategic foresight and innovation. Representatives for Farley at Ford declined to comment on the matter further when contacted by Business Insider.

Historically, Japan’s rise as an automotive superpower during the late twentieth century reshaped global trade dynamics. In 1980, Japan stood as the world’s top automobile producer, having manufactured more than eleven million vehicles in that year alone. Global brands such as Toyota, Nissan, and Honda outperformed their American counterparts in quality, efficiency, and affordability, intensifying pressure on major U.S. automakers including Ford and General Motors. This competitive surge ultimately escalated into an economic confrontation, prompting the Reagan administration to negotiate voluntary export restraints on Japanese cars in 1981. These measures curtailed exports from 1.82 million vehicles in 1980 to 1.68 million the following year, as recorded by the Japan Automobile Manufacturers Association. Despite such interventions, Japan maintained a commanding influence over the industry throughout that decade.

Farley has long been candid in acknowledging China’s rapidly advancing position as the preeminent global leader in electric mobility. He has repeatedly spoken about the country’s unparalleled speed of innovation and production in the EV market, describing China’s progress at the Aspen Ideas Festival in June as “the most humbling thing” he had ever witnessed in his career. In the same discussion, he highlighted how Chinese automakers have seamlessly integrated advanced digital ecosystems into their vehicles, featuring embedded technologies from domestic technology giants such as Huawei and Xiaomi. According to Farley, Chinese vehicles now deliver sophisticated in-car experiences that allow users to connect instantly to their digital lives without cumbersome pairing processes, exemplifying a fusion of convenience and cutting-edge electronics that many Western vehicles have yet to match.

In his remarks, Farley warned that the contest between the U.S. and China extends far beyond the bounds of electric vehicles alone. It is, in his view, a broader industrial struggle over technological supremacy, market share, and long-term relevance in a rapidly evolving global economy. “If we lose this,” he stated emphatically, “we do not have a future Ford.” His sense of urgency highlights the existential stakes involved for traditional automakers that are contending with challengers whose innovation cycles are shorter, costs are lower, and integration with advanced digital platforms is more seamless than ever before.

During a September appearance on The Verge’s “Decoder” podcast, Farley reinforced this perspective, asserting that the most serious competition Ford faces does not come from domestic peers such as Tesla, General Motors, or even other legacy U.S. manufacturers. Instead, he identified Chinese automakers as the “700-pound gorilla” that is not only dominating the domestic Chinese market but also extending its reach rapidly into international territories. This metaphor captured the overwhelming scale and influence of China’s EV industry, which continues to expand its global footprint through both exports and strategic technological partnerships.

Meanwhile, evolving U.S. policy decisions are influencing domestic EV demand. Following the rollback of federal electric vehicle incentives by the Trump administration last month, many analysts have projected a near-term slowdown in American EV adoption. Addressing investors during a Detroit conference on September 30, Farley predicted that sales of electric vehicles in the U.S. could temporarily decline by as much as half. However, he maintained a cautiously optimistic long-term outlook, expressing his belief that EV adoption would continue to rise—especially as more affordable models become available to a broader segment of consumers. Later, on an October 23 earnings call, he estimated that EVs would constitute roughly five percent of the near-term U.S. market, but he underscored that sustained growth would depend on affordability and continued technological improvement.

Farley’s appreciation of Chinese engineering extends beyond industry observation to personal experience. In an October episode of “The Fully Charged Podcast,” he revealed that he had imported and was personally driving a Xiaomi Speed Ultra 7—Xiaomi’s first electric vehicle— flown directly from Shanghai to Chicago. The fact that the CEO of an American automotive icon actively evaluates and utilizes a competitor’s product underscores both the magnitude of the competition and his commitment to understanding it intimately. Discussing the model during the “CBS Sunday Morning” interview, he remarked that U.S. consumers would likely be drawn to Chinese EVs like the SU7 because they offer exceptional quality, refined craftsmanship, and a deeply integrated digital user experience that caters to modern connectivity demands. “To beat them,” Farley concluded, “you have to know them.” His statement encapsulates not only a strategic philosophy but also an acknowledgment of the shifting foundations of the global automotive landscape—one increasingly defined by speed, innovation, and cross-cultural understanding.

Sourse: https://www.businessinsider.com/ford-ceo-china-ev-war-japan-1980s-steroids-2025-10