New York Post·2025-11-12 15:23Core Insights - Ford CEO Jim Farley acknowledged the need for a significant overhaul of the company after realizing the competitive edge of rivals, particularly Tesla and Chinese EV manufacturers [1][4][10] Company Analysis - The comparison between Ford's Mustang Mach-E and Tesla's Model 3 revealed substantial differences, particularly in the wiring loom, which was 1.6 kilometers longer in the Mach-E, adding 70 pounds of weight and costing Ford an additional $200 per battery [3][4] - The revelations from dismantling competitor vehicles prompted Ford to split its operations into two divisions: Model E for electric vehicles and Blue and Pro for traditional vehicles, indicating a strategic shift to address the unique challenges of the EV market [4][5] - The Model E division has incurred losses exceeding $5 billion in 2024, with similar projections for the current year, but the leadership believes this restructuring is essential for long-term accountability and competitiveness in the EV sector [5][8] Industry Context - Ford ranks third in U.S. EV sales as of the third quarter of 2025, trailing behind Tesla and Chevrolet, but the competitive landscape is intensifying, with a widening gap [8] - Chinese EV manufacturers have gained significant market share globally, accounting for over half of all electric vehicles sold, with brands like Xiaomi, BYD, and XPeng rapidly advancing due to lower prices and substantial government subsidies [10][13] - In China, Xiaomi recently delivered nearly 49,000 EVs, surpassing Tesla's 26,000 deliveries, highlighting the competitive pressure on American automakers [11][15]