In a surprising shift, Chinese carmakers could be allowed into the U.S. auto market.
The CEO of Ford Motor Company has proposed allowing Chinese automakers to enter the American market through joint ventures. What exactly is being discussed, and what do we know so far?
According to Bloomberg, citing sources familiar with the matter, Ford CEO Jim Farley has suggested opening the North American market to Chinese manufacturers. The top executive has reportedly discussed with U.S. officials the possibility of organizing local production of Chinese vehicles through joint ventures — similar to the system long used in China. If implemented, Farley believes the arrangement could give American manufacturers access to their partners’ technologies.
Farley reportedly thinks Chinese automakers would be interested in establishing an official presence in the U.S. market, even under the proposed restrictions. Under the concept, controlling stakes in the joint ventures would remain with the American side, while partners would share both profits and technology within the framework of the venture.
Sources cited by Bloomberg say senior U.S. officials have taken part in discussions of the concept, including Lee Zeldin, head of the Environmental Protection Agency.
Ford declined to confirm that such discussions had taken place, stating that the domestic market needs protection from an influx of low-cost Chinese vehicles, which are produced in part thanks to government subsidies.