Ford CEO Checks Glove Box of His Made-In-China Xiaomi for “Secret to EV Success”, Turns Up Empty

Jim Farley, CEO of American-made car manufacturer Ford Motor Company (F), recently shared with British actor Robert Llewellyn on the Fully Charged Podcast that he enjoys driving his Chinese-made electric vehicle and does not plan on giving up driving it any time soon. Farley had a Xiaomi SU7 flown from Shanghai to Chicago as he admitted he drives cars made by his peers to help him better understand the competition.

Farley’s decision to drive a non-Ford vehicle evoked a statement by the CEO of the American Energy Institute Jason Isaac who stated, “Jim Farley’s recent admission that he drives a Chinese-made electric vehicle is a slap in the face to the thousands of hardworking employees at Ford Motor Company.” While Farley’s car choice is debatable, the success of Ford’s EV business is not.

Ford announced third quarter results after the close on Monday that beat consensus on quarterly earnings metrics which were worse than the previous quarter by $1Bn but 5% better than a year ago. However, shares fell as the company pulled back its full-year profit forecast due to supplier disruptions and warranty costs that’s occurring during a global price war fueled by overcapacity, not to mention a $1Bn EV loss.

Of its three business operating segments making up the Ford+ plan, the “Ford e” segment which represents its EV category, contributed the least to revenue of $1.2Bn and was the only segment to be a drag to EBIT of ($1.22Bn). This is compared to the traditional gas powered, Ford Blue with $26.2Bn in revenue and $1.63Bn in EBIT and the super duty truck Ford Pro with $15.7Bn in revenue with $1.81Bn in EBIT. While Ford cited its EV sales increased 12% year over year, Ford hybrid vehicles surged 38% year over year. Additionally, its American competitor, General Motors who recently blew out its Q3 earnings raised its guidance and expects its EV business to be profitable by the end of this year, compared to Ford who only sees real profitability with the introduction of its second-gen EVs.

Farley will need some more time to figure out how to turn a profit on Ford’s EV business as he looks for answers in his Xiaomi. Have you checked the glove box? The company intends to provide a full update on its EV business outlook and profitability in the first half of next year.