Ford and Xiaomi talked about cooperation on cars in the US?

Ford, according to a report by Reuters citing the Financial Times, allegedly discussed with Xiaomi a possible cooperation in the field of electric vehicles, including the scenario of a joint project or local production in the USA. If such an agreement were to actually develop, it would be a major step forward for Xiaomi, a company that entered the auto industry with its own electric models and very aggressive growth plans, but also potentially the “shortest path” to the American market through a partnership with a domestic manufacturer.

But the story broke into denials almost immediately. Ford called the report false, and Xiaomi also rejected the allegations. In some statements that appeared after the text, Xiaomi further emphasized that it does not sell its products and services in the US and that it does not negotiate to enter the market through such an arrangement.

One of the reasons why both companies probably immediately jumped on this story is the relations between the two countries, which in the last couple of decades were on the verge of war, and their markets are continuously in conflict. Any agreement between the two parties would largely depend on politics, i.e. changing tariffs and some obstacles that have been put in place in the past decades to prevent precisely the arrival of Chinese products on the American market and vice versa. What is even more interesting is how many would agree that Ford is one of the most ‘American’ companies in the world, with a huge tradition referring to it, so they are probably aware that an official deal with China would be a shock to their more traditional customers.

But why did the noise arise at all? Because more and more Western manufacturers openly admit that China is currently the fastest in the development of certain EV technologies and in cost optimization, so ideas about partnerships, licenses and common platforms are constantly spinning in the industry. At the same time, any talk of Chinese EVs in the US automatically becomes a politically sensitive topic, due to national security, tariffs and the wider geopolitical framework.

In short, this has been quickly denied so far, but it is still interesting as a signal where the automotive industry is looking for a switch: either for the faster development of electric vehicles, or for reducing costs, or for entering markets that are increasingly closed. If something official appears, it will be visible through a concrete announcement of a partnership or a joint project, and not through “informal talks”, and as we said, it depends on the policy.

By Editor