AfriPulse
Ford has spoken with Chinese electric vehicle maker Xiaomi about setting up a joint venture to produce electric vehicles in the US, the Financial Times reported, citing people familiar with the matter.
A Ford spokesperson denied the FT report, calling it “completely false” in a post on Platform X. A Xiaomi spokesperson also dismissed the report.
“Xiaomi does not sell its products and services in the United States and does not negotiate,” said a Xiaomi spokesperson.
Some major U.S. automakers and lawmakers are worried that government-backed Chinese car and battery makers will enter the United States to set up production facilities, arguing that the industry’s future is at risk.
The Republican chairman of a US House committee has sent a letter to Ford CEO Jim Farley, asking whether the automaker plans to form a joint venture with Chinese automaker BYD and warning of potential risks.
“China has already shown in recent months that it will weaponize the auto supply chain. This is a serious vulnerability and would only get worse if Ford entered into a new partnership with BYD,” John Mullenaar said in the letter.
Mullenaar also expressed concern about the automaker’s plans to build a $3 billion center that will produce batteries using technology from Chinese firm CATL.
North American automakers have scaled back their expensive push into electric vehicles after struggling to keep up with Chinese rivals, losing tax breaks and turning to cheaper models and hybrids.
Ford said in December last year that it would write down $19.5 billion and discontinue several electric vehicle models.
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Source: AutoJosh | Read the Full Story…
