Ford Motor Company CEO Jim Farley on Tuesday warned U.S. policymakers to carefully consider the potential risks of allowing Chinese automakers broader access to the American market, citing Europe’s experience as a cautionary tale.
Farley stated that it is now “too late” for Europe to address the influx of Chinese vehicles, emphasizing concerns over national security and data privacy during a speech at the Automotive News Congress in Detroit. He urged the U.S. to take a deliberate approach to avoid similar challenges.
Chinese automakers have rapidly expanded in Europe, with market share rising from near zero in 2020 to 12% in August 2025, according to Germany-based Dataforce. Industry analysts project Chinese brands’ registrations in Europe will exceed 1.3 million vehicles by 2026, up from just over 50,000 in 2020. Global market share for Chinese brands increased nearly 70% between 2020 and 2025, according to GlobalData.
Farley highlighted the advanced capabilities of modern vehicles, noting that they can autonomously drive and collect data, which he argued raises national security concerns. “For your national security alone, it’s critical that we think about how do we find the right balance,” he said.
Ford has taken a dual approach, both competing against Chinese automakers and forming strategic partnerships where beneficial. In July, Ford and Chinese automaker Geely announced a joint venture to produce electric vehicles at a Ford-owned plant in Spain, set to begin operations in early 2025. Farley described this strategy as focusing on areas where Ford lacks intellectual property or can improve capital efficiency, particularly in Europe and Southeast Asia.
The company also plans to launch a new “universal electric vehicle” next year, including a pickup truck model, to directly compete with Chinese manufacturers. However, Ford’s partnerships with Chinese firms have drawn scrutiny. The Trump administration recently sent Ford a letter expressing “profound concern” about the automaker’s ties to Chinese companies, questioning its strategic direction.
Trade associations representing major automakers, including Ford and Tesla, have previously called on the U.S. government to maintain policies that restrict Chinese automakers from selling, importing, or manufacturing vehicles in the country. Current U.S. policies include 100% tariffs on Chinese vehicle imports and limits on China’s dominance in materials used for domestic automotive production.
Industry analysts note that Chinese manufacturers have accelerated vehicle development in their domestic market, enabling rapid expansion into Europe. Steffen Michulski, a regional consultant for Europe at automotive data firm JATO Dynamics, described the growth as “not just growth, it’s industrial acceleration on a scale Europe has never experienced before.”