Ford CEO Jim Farley says Europe reacted too slowly to the rise of Chinese carmakers and has already lost the chance to shape the market on its own terms. Speaking at the Automotive News Congress on September 29, Farley described Europe as a warning for the United States. In his view, America still has time to decide how Chinese automakers should access its market and how much protection local manufacturers need.
Farley’s comments were not a direct call for an immediate US ban. He argued for a slower and more deliberate process than the one he believes Europe followed. The timing matters because Ford is pursuing two apparently different responses at once: it is partnering with Geely to build vehicles in Spain, while investing in an affordable electric platform and a new electric pickup in Kentucky.
Europe is the example Farley wants Washington to study
According to Motor1’s report, Farley said Europe waited too long to answer Chinese automakers. Chinese brands had a small presence in Europe in 2020, but their share grew through the middle of the decade, particularly in electric vehicles. BYD, Geely and other Chinese companies now compete for European customers with lower-cost products, fast software development and equipment levels that established manufacturers must match.
Farley did not say that every Chinese brand has the same quality, business model or market position. His point was about timing. Traditional automakers and policymakers had years to prepare, but the competitive gap is more difficult to close once a rival has established products, suppliers, data and distribution in a region.
European policy is part of that story. The European Union introduced additional duties on certain electric vehicles made in China after a trade investigation that began in 2023. Those measures changed the economics of direct imports, but they did not remove Chinese competition. A manufacturer can respond by building locally, forming a joint venture or using European production capacity rather than shipping every vehicle from China.
Ford’s own European plans illustrate that shift. The company does not treat China only as a distant export threat. It also sees Chinese companies as a source of cost pressure, software speed and manufacturing discipline. Ford says it needs partners and a more efficient industrial structure to launch vehicles in Europe at a price customers will accept.
Ford and Geely plan a Valencia joint venture
Ford and Geely announced an agreement in July 2026 to establish a manufacturing joint venture at Ford’s Valencia plant in Spain. The agreement still requires regulatory approvals. If it proceeds, the joint venture is expected to begin operating in the first half of 2027, with the first new vehicles scheduled to leave the plant in 2028.
The plan covers Ford and Geely vehicles for European markets. Ford says Valencia will produce an all-new multi-energy crossover, a new member of the Bronco family and two electric Geely SUVs. Ford Kuga production is expected to continue. The plant has potential annual capacity of about 500,000 vehicles, and Ford says it will own 66% of the joint venture while Geely Auto will own 34%.
For Ford, this is not described as a complete transfer of product control. The new family crossover will be designed by Ford and jointly developed with Geely, with Ford driving dynamics and brand identity remaining part of the brief. For Geely, Valencia offers a European production base and a way to bring its vehicles closer to local customers, suppliers, regulations and service networks.
The relationship has a history behind it. Ford sold Volvo Cars to Geely in 2010 and later watched the Chinese group invest in and expand the Swedish brand. Ford describes the relationship as one based on trust and respect, but the economic purpose of the new venture is straightforward: use factory capacity more efficiently, spread development costs and compete closer to the new cost benchmark in Europe.
Ford is also building its own US response
Farley is not relying on partnerships alone. Ford is developing the Universal EV Platform for a family of more affordable, software-defined electric vehicles. Its first product is a midsize four-door electric pickup that will be assembled at Ford’s Louisville Assembly Plant in Kentucky from 2027.
Ford says it is investing about $5 billion in the platform, the production system and associated batteries. The programme is expected to create or secure nearly 4,000 jobs across Louisville Assembly Plant and BlueOval Battery Park Michigan. Ford also plans to use prismatic lithium-iron-phosphate batteries that do not rely on cobalt and nickel, a move intended to reduce cost and simplify sourcing.
The truck is called Ford Fathom. Ford has not yet published every figure needed for a complete comparison with Chinese electric pickups. Final range by version, output, towing capacity, full pricing and delivery timing by market remain incomplete. Ford does say the vehicle is intended for the US and export markets and is scheduled to launch in 2027.
The Universal EV Platform is not only a battery and chassis programme. Ford is redesigning the way the vehicle is assembled, dividing production into sub-assemblies and reducing the number of parts. The goal is to lower manufacturing time and cost so an electric vehicle can reach a price closer to a conventional car. That directly addresses one of the advantages often associated with Chinese EV makers: the ability to build and update products at a lower cost.
Why the US still has a different choice
Chinese-built electric vehicles already face high US tariffs and restrictions involving batteries and other components. Motor1’s report also points to political concern about Chinese investment in American auto manufacturing. Farley did not argue that the existing barriers should simply disappear. He said the United States should assess its options before market access becomes an emergency decision made under pressure.
Opening the market more widely could bring lower prices and force established manufacturers to improve. It could also raise questions about connected-car data, software control, supply chains, state support and domestic production. A total ban would protect incumbent manufacturers but reduce competitive pressure on pricing and technology. Farley’s position is best read as an argument for weighing those trade-offs rather than choosing a single slogan.
Ford itself demonstrates the tension. In Europe, it is working with Geely to use an existing factory more efficiently and accelerate new products. In the United States, it is investing in a proprietary platform, domestic assembly and local battery production. These approaches can coexist, but together they show how a traditional manufacturer must compete through its own engineering, lower costs and carefully selected partnerships.
What this means for European buyers
For European customers, the debate is not only about the country printed on a badge. They will also care where a vehicle is built, who controls its software, how the warranty works, which service network supports it and how quickly replacement parts can arrive. A car built in Spain may use technology and components from several countries, while a European brand may depend on Asian suppliers.
Ford and Geely have not published prices for the future Valencia models. They have also not confirmed that every planned vehicle will be sold in every European country or that Romanian specifications will match the Spanish or German versions. The confirmed facts are the proposed joint venture, the broad vehicle types and the planned production timing.
Farley’s warning is therefore also a description of a change in industrial speed. Ford recognises the pressure from China but is trying to turn it into a two-track plan: partner where cost and speed matter, and retain control where proprietary products and US manufacturing are strategic. Whether that is enough will depend on real prices, reliability, software, service and customer response—not on executive statements alone.
