Jim Baumbick, the European president of U.S. automaker Ford, has called for a "level playing field" to address the influx of inexpensive Chinese vehicles into the UK market. He suggested that policymakers should better recognize the value of traditional manufacturers in Britain and Europe, which employ thousands, as they contend with this competitive pressure.
Baumbick stated that without such recognition, Ford, which has significant operations in Germany, Spain, and the UK, would need to take "necessary" steps to maintain profitability. Ford, a company with over 5,000 employees in the UK and a history spanning more than a century in the country, is among established automakers facing challenges from the rise of Chinese brands like BYD.
Concerns have been raised that the competition is unfair due to substantial state subsidies and China's ability to produce vehicles at a considerably lower cost. This situation has had an impact on Europe's manufacturing sector, notably in Germany, where Volkswagen has announced significant job cuts. While the European Union has imposed tariffs on Chinese imports, Britain has maintained a more open approach, leading to a notable increase in sales of Chinese brands.
"I think regulators across Europe and in the UK need to actually create a level playing field for all OEMs [manufacturers] to compete and serve the domestic agenda for Europe and the UK," Baumbick said, drawing an analogy to team sports where fairness in numbers is essential.
When questioned about the potential for reduced investment in the UK if the government does not adopt a firmer stance on China, Baumbick emphasized the company's continuous assessment of business viability. "I have one overarching objective and that is to build a sustainably profitable business for the next 100 years – so I have to do what is necessary to actually do that, to have a thriving, sustainable business," he stated.
To remain competitive on cost, Ford is collaborating with other manufacturers, including Volkswagen and Renault, and has even formed a joint venture with China's Geely at its plant in Valencia, Spain.
Speaking at the Madrid Grand Prix, Baumbick also addressed the UK's regulations mandating a transition to electric vehicles. He described the current rules as "the most aggressive EV mandates on the planet." The Labour party recently announced a consultation regarding the zero-emission vehicle (ZEV) mandate. Current regulations require automakers to progressively increase the proportion of electric vehicles they sell, aiming for 80% by 2030. However, sales have fallen short of targets, with electric vehicles comprising only one in four new cars registered this year, below the 33% goal for 2026.
Baumbick argued that the current path is "disconnected from reality" and needs adjustment starting in 2027. He proposed that instead of solely focusing on pushing back deadlines, there should be an acknowledgment that some consumers may prefer a phased approach, opting for hybrid vehicles before transitioning to fully electric cars. "We have to be honest about partial electrification… some customers will jump right to an EV – one step – other customers will take two steps, they’ll move to partial electrification, then do an EV," he explained.