Ford, Xiaomi Denies EV Joint Venture Talks In US

Speculation around a potential electric vehicle (EV) partnership between Ford and Xiaomi has been firmly shut down, with both companies denying reports that they were in talks to form a joint venture in the United States, CarNewsChina has reported.

The claims first surfaced in a Financial Times report, which cited unnamed sources familiar with the matter, but were quickly contradicted by official statements from both sides.

Xiaomi clarified that reports of negotiations with Ford were inaccurate, stressing that no discussions had taken place and that the company does not currently sell products or services in the US market. 

Ford echoed the denial, calling the report completely untrue and without factual basis, a position later confirmed by Reuters.

The Financial Times had reported that preliminary conversations were held between Ford and Xiaomi, and even suggested Ford had reached out to other Chinese automakers, including BYD, to explore possible cooperation related to EV production in the US. 

However, none of these claims were backed by confirmation from the companies involved.

Despite the denials, the report has drawn attention to growing interest among Western automakers in Chinese EV technology. Ford CEO Jim Farley has previously spoken openly about the rapid progress of Chinese EV makers, even importing a Xiaomi SU7 for personal use. 

He has also warned that Chinese brands pose a serious competitive threat and are likely to seek entry into the US market in the future.

Any such collaboration, however, would face significant regulatory hurdles. The US government has tightened its stance on Chinese automotive involvement, imposing tariffs on Chinese-made vehicles and restricting the use of Chinese software and hardware in connected cars. 

Lawmakers have also raised concerns about partnerships between US automakers and Chinese tech firms, although Ford has already entered a licensing arrangement with CATL to use battery technology in American production.

Xiaomi, meanwhile, only entered the automotive space in 2024 with the launch of its first EV, marking a major expansion beyond its core consumer electronics business. 

Other Chinese automakers, such as BYD, have focused their overseas growth on Europe, Southeast Asia, and Latin America, often setting up localized manufacturing to bypass trade barriers.

For now, both Ford and Xiaomi have made it clear that no joint venture or EV production plans in the US are on the table. Still, the episode highlights how closely watched and politically sensitive any potential collaboration between US and Chinese automakers has become as the global EV race heats up.

Source: CarNewsChina.