Ford's new Chinese tie-up not happening - report: Rumours of popular brand's unexpected alliance denied

According to a report in CarNews China, the joint-venture speculated will not happen, with both brands putting out statements to different outlets denying any talks.

Xiaomi stated that reports about negotiations with Ford on the joint-venture were false, with the Chinese company stating it does not sell products or services in the US. 

Ford described the reports as completely untrue and without factual basis. 

It was thought Ford and Xiaomi may have been about to start working on building electric cars and selling them in the US market. 

The Financial Times reported cited for this speculation also suggested Ford had been in contact with BYD and other Chinese manufacturers about potential partnerships.

This is not the first we have heard about a potential partnership between these two manufacturers. 

Back in October of 2024, Ford CEO Jim Farley commented that he had been driving a Xiaomi SU7 electric sedan for several months, which he had specially imported. 

“I don’t like talking about the competition so much, but I drive a Xiaomi. We flew one from Shanghai to Chicago and I’ve been driving it for six months now, and I don’t want to give it up,” he said in 2024.

Ford currently offers three all-electric models, which are the Mustang Mach-E SUV, F-150 Lightning full-size pick-up and the E-Transit van.

The brand has ceased production of its F-150 Lightning due lacklustre demand in North America, having halted production on a couple of occasions beforehand. Ford F-150 Lightning

Farley has also said Chinese automakers presented an “existential threat” to the western automotive industry. 

New battery technology and software integration have long been key features of Chinese cars, with some boasting the highest driving ranges of any EVs on the road.

The upgraded Xiaomi SU7 will launch in China in April with a 101.7kWh battery pack in the top-of-range model, offering a CLTC driving range of 902km, up from 830km. 

While CLTC is generally more lenient than the WLTP testing cycle, it is likely to still offer a real-world range of more than 700km, one of the highest in the sedan category. 

Xiaomi cars remain exclusively sold in China, but there are plans for the brand to launch in Europe next year, before other foreign markets, potentially the US. 

One of the biggest roadblocks to Chinese manufacturers entering the US market are the extensive tariffs placed on imported vehicles from China.

Imported Chinese electric vehicles still face a 100 per cent tariff in the US, while there is also a 25 per cent on other types of China-built vehicles. 

Domestically, Ford is facing increasing pressure to appease the recently-implemented New Vehicle Efficiency Standard (NVES) which imposes fines on manufacturers whose fleets emit too much carbon.

An established EV partner could help the brand successfully expand its electric range, to transition away from its otherwise mostly internal-combustion powered line-up.