Ford and GM join forces to address China's electric vehicle challenges: seeking technical cooperation to reduce costs

The CEOs of Ford Motor and General Motors revealed at recent meetings that they are exploring the possibility of collaborating with other automakers to reduce the cost of research and development of electric vehicle technology in the face of continued challenges from Chinese competitors. This move is aimed at maintaining a competitive advantage and accelerating the promotion of electric vehicles to adapt to rapid changes in market demand. The cooperation will bring greater innovation potential to both parties and contribute to the development of the electric vehicle industry.

Ford Motor CEO Jim Farley revealed that Ford intends to cooperate with other automakers to reduce the cost of electric vehicle batteries. He pointed out that the company's revenue would be at risk if it failed to compete fairly with Chinese competitors. To this end, Ford is seeking to work with original equipment manufacturers (OEMs) to enhance purchasing power and battery competitiveness.

Marin Jaya, an executive at Ford’s electric vehicle division, expressed concerns about Chinese automakers. He pointed out that the Chinese automobile market may be like the early Japanese and Korean automobile markets, attracting customers through extremely competitive prices. Jaya warned that if Ford cannot make a breakthrough in electric vehicle technology, the company will face the risk of an uncertain future.

General Motors CEO Mary Barra said the company is willing to cooperate with other companies, especially in areas that do not involve consumer technology. She believes such cooperation will make more efficient use of research and development and capital to fend off challenges from Chinese competitors.

Ford recently announced that they are re-evaluating their electrification strategy and intend to launch small electric vehicles using new low-cost platforms. The decision comes as Ford's electric vehicle unit Model E will lose nearly $4.7 billion in 2023, exceeding previous expectations of $3 billion.

In this case, Ford and General Motors' cooperation with Chinese competitors has become crucial. Through cooperation, the two automakers can share technology, reduce costs and enhance the market competitiveness of electric vehicles. However, how to maintain independence and technological innovation in cooperation will become important challenges they need to solve.

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