Explore the truth behind rumors of a Ford‑Xiaomi electric car joint venture in the US and what it means for the auto industry. Read more now!
Background of the Rumor
In early 2024, several media outlets, including the Financial Times, reported that Ford was in talks with Chinese tech giant Xiaomi to create a joint venture for manufacturing electric vehicles (EVs) in the United States. The story quickly spread across social platforms, fueling speculation that the two brands might combine Ford’s automotive expertise with Xiaomi’s consumer‑electronics pedigree.
Official Statements from Both Companies
Ford’s spokesperson took to the X platform (formerly Twitter) to categorically reject the claim, calling it “completely false.” The statement emphasized that no discussions about a partnership with Xiaomi have taken place.
Similarly, Xiaomi issued a brief denial, noting that the company does not sell its products or services in the United States and has not entered any negotiations to launch an EV venture there.
Why the Rumor Matters: A Political and Market Context
The timing of the rumor is significant. U.S. lawmakers have grown increasingly wary of Chinese influence in the auto sector, especially after China’s state‑backed firms have expanded battery and vehicle production abroad. Republican representatives have asked Ford’s CEO Jim Farley to clarify whether the automaker is considering a partnership with another Chinese EV maker, BYD, and warned about potential supply‑chain vulnerabilities.
Senator John Moolenaar highlighted concerns that China could “weaponise” the automotive supply chain, pointing to Ford’s plan to invest $3 billion in a data centre that would rely on battery technology from Chinese supplier CATL.
Ford’s Current EV Strategy
While the Xiaomi story has been debunked, Ford’s EV roadmap faces real challenges. The company recently announced a $19.5 billion write‑down on its EV program and the cancellation of several electric models slated for 2025. Nevertheless, Ford reported a 6 % sales increase in the United States for 2025, driven primarily by hybrid trucks and affordable SUVs, which helped offset the slowdown in pure‑EV demand.
CEO Jim Farley has openly praised the driving dynamics of Xiaomi’s SU7 electric scooter, calling the experience “great,” but he stopped short of suggesting any formal collaboration.
Implications for the Automotive Landscape
The episode underscores the heightened scrutiny Chinese‑linked EV projects face in the U.S. market. Even unfounded rumors can trigger political inquiries and influence investor sentiment. For legacy automakers like Ford, the pressure to deliver competitive electric models while navigating geopolitical concerns remains intense.
Conclusion
Both Ford and Xiaomi have firmly denied any joint‑venture talks, and there is no evidence of a partnership in progress. However, the broader debate about Chinese involvement in the North American auto supply chain continues to shape strategies for established manufacturers and new entrants alike.