The European boss of Ford has called for a "level playing field" in the battle against cheap Chinese cars flooding the UK market, warning that the carmaker will have to "do what is necessary" to remain profitable if policymakers fail to act.
Jim Baumbick, president of Ford in Europe, said policymakers could do more to recognise the value of traditional manufacturers in Britain and Europe that employ thousands of people, as they face growing competition from Chinese rivals.
Ford employs more than 5,000 people in the UK and has been operating in Britain for more than a century. The company also has major sites in Germany and Spain. It is among the established carmakers being squeezed by the advance of Chinese brands such as BYD.
There have been complaints that the competition is unfair, due to heavy state subsidies in China and the ability of Chinese companies to produce cars at much lower cost.
Pressure on Europe's carmakers
The squeeze on established manufacturers has come at the expense of Europe's manufacturing base, notably in Germany, where the carmaker Volkswagen has cut 100,000 jobs.
The European Union has imposed tariffs on Chinese imports to counter the threat, but Britain has taken a more open approach and has seen a steep increase in sales by Chinese brands.
"I would always invite competition, I think competition breeds excellence. But it needs to be a fair playing ground. You would never start a football match with different numbers of personnel on each side," Baumbick said.
"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."
Warning on UK investment
Asked whether Ford might invest less in the UK unless the government takes a tougher stance with China, Baumbick said: "We're always looking at the fitness of our business. We have to recognise the context of the business environment."
"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."
"Do I think that regulators need to see the value in the local continued investment and our commitment to the UK and to Europe? You bet," he added.
To compete on cost, Ford is partnering with rivals including Volkswagen and Renault, and even China's Geely, with which it has launched a joint venture at Ford's plant in Valencia, Spain.
Speaking at the Madrid Grand Prix
Baumbick made his comments to the Mail at the Madrid Grand Prix, following Ford's return to Formula One racing as part of the Red Bull team set-up.
He also called for changes to UK rules forcing the switch to electric cars, describing the current requirements as "the most aggressive EV mandates on the planet."
Labour announced a consultation last month on the zero emission vehicle (ZEV) mandate. Under current rules, carmakers must steadily increase the proportion of electric vehicles they sell, with a goal of reaching 80 per cent by 2030.
Manufacturers are running behind that trajectory. Only one in four new cars registered so far this year has been electric, falling short of the 33 per cent target set for 2026.
Call to rethink the EV mandate
"The current trajectory is disconnected from reality. That needs to change quickly starting in 2027," Baumbick said.
Rather than calling for the ultimate switchover date to be pushed back, he called for recognition that some motorists anxious about going fully electric might want to switch to hybrids first before moving to battery-powered 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," Baumbick said.
