Ford and Xiaomi denied a Financial Times report about potential electric vehicle partnership talks in the United States. Both companies called the February 2 report "completely false" within hours of its publication.
The Financial Times claimed Ford held preliminary discussions with the Chinese electronics giant about forming a joint venture to manufacture EVs in the US. Four people familiar with the matter reportedly described the talks as exploratory, with no agreement on structure or timing.
Xiaomi stated it does not sell products or services in the US market and has no plans to negotiate with any companies to do so. The company's official statement read:
"This report about a joint venture with Ford Motor Company is completely false."
Ford issued a parallel denial, calling the story inaccurate. The synchronized rebuttals came as US lawmakers expressed concerns about Chinese automakers gaining manufacturing footholds in American markets.
The speculation emerged despite significant trade barriers. The US imposed 100% tariffs on Chinese-built electric vehicles starting in 2024, effectively blocking direct imports. A partnership with Ford would have allowed Xiaomi to bypass these restrictions.
Ford CEO Jim Farley has publicly praised Xiaomi's EV technology. He drove a Xiaomi SU7 for six months after having one flown from Shanghai to Chicago.
"I don't want to give it up," Farley said in a 2024 podcast interview.
Farley has called Chinese EVs "the most humbling thing I have ever seen" and described them as an "existential threat" to Western automakers. He noted that 70% of electric vehicles are made in China with "far superior in-vehicle technology."
Xiaomi's electric vehicle division posted impressive sales despite financial losses. The SU7 outsold Tesla's Model 3 in China during 2025 by approximately 30%. The company delivered 135,000 vehicles in 2024 and more than 411,000 in 2025.
The Chinese smartphone maker entered the automotive sector in 2021 and launched its first EV, the SU7, in March 2024. The sedan starts around $30,000 in China and competes directly with Tesla's Model 3.
Political resistance to Chinese automotive partnerships remains strong in Washington. Representative John Moolenaar warned that Ford would be "turning its back on American and allied partners" by collaborating with Chinese companies.
"China has shown in recent months it will weaponize the auto supply chain," Moolenaar said in a letter to Farley last week. "This is a serious vulnerability."
Ford continues to face challenges in its EV transition. The company announced in December 2025 it would take a $19.5 billion write-down and scrap several electric vehicle models. North American automakers have scaled back costly EV initiatives after struggling to compete with Chinese rivals.
Xiaomi plans to bring its SU7 sedan to European markets in 2027. The company's operations will remain focused on China and Europe, according to industry analysts.
