Ford Motor Co. (NYSE:F) and Chinese tech giant Xiaomi (OTC:XIACF) have both denied reports of a potential collaboration to produce electric vehicles in the United States.
Ford Reportedly Held Preliminary Talks With Xiaomi
The Financial Times reported that Ford had preliminary discussions with Xiaomi about a joint venture, aiming to facilitate Chinese carmakers’ entry into the U.S. market. However, both companies have refuted these claims.
A Ford spokesperson stated, "This story is completely false. There is no truth to it," according to the report. Similarly, Xiaomi denied any negotiations with Ford, emphasizing that they do not sell products or services in the U.S.
Despite the denials, the potential collaboration has sparked controversy in Washington. John Moolenaar (R-Mich.), chair of the House China committee, criticized the idea, suggesting it would increase U.S. dependency on China.
Farley's Admiration For Chinese EVs
Meanwhile, Ford CEO Jim Farley has expressed admiration for Chinese EVs, even importing Xiaomi’s SU7 model for personal use. Farley has previously warned about the competitive threat posed by Chinese carmakers to Western manufacturers.
Adding to the complexity, the Pentagon has flagged Ford’s existing licensing deal with China’s CATL over alleged military ties, which CATL denies. The House China committee has also raised concerns about this agreement.
Ford Seeking Partnerships
The denial of joint venture talks between Ford and Xiaomi comes at a time when Ford is actively seeking strategic partnerships to bolster its position in the electric vehicle market.
Recently, Ford has been involved in discussions with General Motors Co. (NYSE:GM) to support the bankrupt First Brands Group, highlighting its focus on securing its supply chain.
The company is also exploring a partnership with China's BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) that would see Ford purchasing batteries for some of its hybrid vehicles.
Furthermore, Farley has previously praised former President Donald Trump for his cooperation but stressed the need for more action to reduce China’s dominance in the automotive sector.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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