Imagine you're the boss of one of the most iconic American car companies. You spend your days worrying about the F-150, the Mustang, and the legacy of Henry Ford. Then, you fly a car in from China—a car made by a company that used to just make smartphones—and you start driving it every single day.
That’s exactly what Jim Farley did.
When the news broke that Ford CEO drives Xiaomi, specifically the SU7 sedan, the internet basically lost its mind. People were confused. Was he defecting? Was Ford giving up?
Honestly, the reality is way more interesting than the headlines.
Why a Ford CEO Drives Xiaomi in Chicago
Most folks think it's weird for a CEO to drive a rival’s car. It’s actually pretty standard "benchmarking." But this was different. Usually, you test a car for a weekend on a private track. You don’t ship it halfway across the world to Chicago and use it as your daily driver for six months.
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Farley didn't just test it. He fell in love with it.
On the Everything Electric Show podcast, Farley admitted he didn't want to give it up. Think about that. The guy in charge of the Mach-E was so impressed by a Chinese smartphone company's first attempt at a car that he couldn't stop driving it.
Xiaomi is a "juggernaut," as he calls them. They aren't just building a car; they are building a mobile device that you happen to sit inside. That is the fundamental shift that has Detroit sweating.
It’s Not Just About the Engine Anymore
For a hundred years, the car business was about "the oily bits." It was about engines, transmissions, and how much chrome you could stick on the grille.
That world is dead.
When you look at why the Ford CEO drives Xiaomi, you have to look at the software. In China, the car is an extension of your phone. Farley mentioned that when you get into these Chinese EVs, your whole digital life is just there. No fiddling with Bluetooth. No annoying CarPlay glitches. It just works.
Xiaomi sold 100,000 units of the SU7 before they even delivered the first one. They hit a cumulative 500,000 deliveries by late 2025. That is a speed of scaling that the traditional "Big Three" can't even fathom.
The Existential Threat Is Real
Farley has been blunt. He called the Chinese EV industry an "existential threat."
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He’s not being dramatic.
While the U.S. was focused on making $80,000 electric SUVs, China was figuring out how to make $30,000 sedans that feel like a Porsche. The SU7 starts at roughly $30,000 in China. It has air suspension. It has active aero. It has a Level 2 autopilot system that actually works in 100 different cities.
The gap is "humbling." That’s his word, not mine.
The Pivot Is Happening Now
You've probably noticed Ford's strategy changing lately. They’ve pulled back on big 3-row EVs. They are leaning into hybrids. They are obsessing over a secret "skunkworks" team in California trying to build a $30,000 EV platform.
None of that is a coincidence.
The fact that the Ford CEO drives Xiaomi as his personal car means he’s seeing the future every time he goes to the grocery store. He realized Ford can't just "Iterate" its way to success. They have to rethink the whole thing.
What This Means for You
If you’re a consumer, this is actually great news. It means the complacency in the U.S. auto market is finally over. Ford is being forced to compete with a level of technology and price that seemed impossible five years ago.
But there’s a catch.
You can’t buy a Xiaomi SU7 in the states. Not yet, anyway. Between tariffs and political tension, these "humbling" cars are stuck on the other side of the ocean. For now, the only way to experience one is to be the CEO of Ford or a very dedicated importer.
The Reality Check on Chinese EVs
There’s a lot of talk about "software-defined vehicles." It sounds like corporate jargon. But when you realize a phone company like Xiaomi can build a car that a car expert doesn't want to stop driving, the jargon becomes reality.
Ford is currently taking massive charges—we're talking nearly $20 billion—to pivot their strategy. They are moving toward:
- Extended Range EVs (EREVs): Basically an EV with a gas generator to kill range anxiety.
- Hybrids: Which are currently 30% of F-150 sales.
- Affordable EVs: Using a new "Universal EV" platform.
Farley knows that if Ford doesn't match the cost and "digital life" integration of companies like Xiaomi and BYD, they won't just lose the EV race. They’ll lose everything.
Actionable Insights for the Future
If you’re watching the car market, keep your eye on these specific shifts. The "Farley-Xiaomi" incident wasn't a PR stunt. It was a wake-up call.
- Watch the $30,000 Mark: That is the new battleground. If a car company can't give you a great EV for $30k, they are going to struggle.
- Software is the Product: If the screen in your car feels like a 2012 iPad, that car is already obsolete. The "mirroring of your digital life" is the new standard.
- Hybrid is the Bridge: Don't feel bad about buying a hybrid. Even the guy driving a Xiaomi is doubling down on Ford’s hybrid production because that’s what actually sells in 2026.
The era of the "dumb" car is over. Whether it's a Ford or a Xiaomi, your next vehicle is going to be a computer first and a carriage second.
To stay ahead of the curve, keep an eye on Ford’s upcoming "skunkworks" releases in 2027. That will be the first real test of whether Farley’s six months behind the wheel of a Xiaomi actually changed the way Ford builds cars.
The next few years are going to be wild. Detroit is finally awake. Let’s see if they can catch up.