June 30, 2026 – Ford CEO Jim Farley laid bare the automaker’s glaring gaps in affordable electric vehicle development during a recent interview, admitting the company’s current R&D framework is a quarter-century behind industry standards and leaves Ford unable to compete head-to-head with BYD.
A core competitive edge Farley highlighted for BYD lies in its fully vertical battery supply chain. The integrated manufacturing structure cuts BYD’s battery expenses by 30 percent compared to Ford’s battery supply deals with CATL. According to Farley, Ford cannot match this vertical integration cost advantage anytime soon, so the brand must pursue an alternative route to narrow the battery cost gap with its Chinese rival.
Farley outlined a comprehensive technical overhaul as Ford’s viable path forward. The firm plans to redesign the energy efficiency of EV motors, gearboxes and inverters from scratch. If the redesign hits its targets, Ford vehicles can carry 30 percent smaller battery packs, drastically trimming overall battery-related expenditures to draw closer to BYD’s cost levels.
Beyond technical upgrades, Ford has launched a thorough benchmarking initiative against Chinese EV makers. Farley confirmed the company has imported multiple mass-produced Chinese electric vehicles via air freight to its U.S. headquarters for full teardown analysis. Engineers across all departments are dissecting BYD’s supply chain layout, product development workflows and strict cost-control tactics, with leadership mandating every team acknowledge the formidable competitiveness of China’s new energy vehicle manufacturers.
This is not Farley’s first candid assessment of China’s EV prowess. Last year, he shared that tearing down Tesla Model 3 units alongside Chinese EV models left him deeply humbled, as the internal build and cost details uncovered during the disassembly process exceeded all his negative expectations.
Farley also pointed out a stark market imbalance between the U.S. and Chinese EV sectors. Annual electric car sales in the United States stand at merely one-tenth of China’s volume. No domestic U.S. automaker—including Tesla, General Motors and Ford—can currently match the comprehensive competitiveness of Chinese EV brands on a global playing field.
