Ford and BYD are discussing a cooperation agreement where the American oto manufacturer would purchase batteries from the Chinese oto company for some hybrid models, according to sources cited by WSJ.
The two companies are still discussing how the agreement would function. One idea involves Ford importing batteries from BYD to its plants outside the US. Negotiations are ongoing, and there is still a possibility that the deal may not materialize.
If finalized, this partnership would unite Ford with Trung Quoc’s largest oto company, which has caused concern across much of the US oto industry due to its ability to produce affordable vehicles integrated with advanced technology.
For Ford, this collaboration addresses a significant challenge. As the company scales back electric vehicle production and enhances its hybrid vehicle lineup, it requires a battery supplier. BYD possesses the capability to produce high-quality oto batteries.
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Ford Kuga plug-in hybrid model. Photo: Ford. |
Recently, BYD surpassed Tesla to become the world's leading electric vehicle manufacturer. While primarily known for battery production in Trung Quoc, BYD is expanding its global footprint, establishing manufacturing capabilities in Brazil, Europe, and Southeast Asia.
The timing of these discussions coincides with a major turning point for Ford. The company recently announced a 19,5 billion USD loss related to electric vehicles, including the cessation of F-150 Lightning pickup production. Alongside a renewed focus on internal combustion engine vehicles, Ford plans to develop its hybrid vehicle lineup, an area where BYD is particularly strong.
Instead of building new factories or reactivating suspended partnerships, Ford could simply procure batteries directly. This approach would streamline its supply chain as it aims for hybrid vehicles, plug-in hybrid vehicles, and electric vehicles to constitute 50% of its global sales by 2030.
However, any such agreement would likely not be approved by President Donald Trump's administration. Immediately after news emerged of Ford's negotiations with BYD, Mr. Trump's top trade advisor, Peter Navarro, criticized the plan on January 16.
Meanwhile, Mr. Trump has articulated a different perspective. Speaking to reporters, the President stated that he welcomes foreign companies, including those from Trung Quoc and Japan, to establish operations in the US, provided they employ American labor.
By My Anh
