According to a recent Wall Street Journal story, the secret test drive took place in China last year. Ford has worked with Changan for years, but the executives weren't ready for what they experienced.
After trying out the electric SUV, Lawler turned to Farley and said:
"Jim, this is nothing like before. These guys are ahead of us."
The realization hit hard. Farley later told board member John Thornton that Chinese EVs posed "an existential threat" to Ford.
Just a few years ago, experts didn't think Chinese car makers would catch up so fast. Now, they're often leading the pack with cutting-edge electric vehicles.
Ford's not giving up, though. They're working on a $30,000 electric car that they hope will compete with Chinese options. It's set to launch in early 2027, and the company aims to make it profitable.
But Ford's also being careful. They've scaled back some of their EV plans. In Europe, instead of going all-electric by 2030, they'll keep selling gas-powered cars and hybrids alongside EVs.
They've also made changes to their product lineup. Plans for a three-row electric SUV set for 2025 have been scrapped. And they've pushed back the launch of a large electric truck from 2025 to 2027.
Ford might get some help from tariffs on Chinese-made EVs, which could slow down the competition. But it's clear the race is on, and Ford knows it needs to step up its game to stay in the running.
Source: WSJ