A century ago, the Ford assembly line revolutionized not only the car industry, but capitalist production in general. The “Fordist” model combined increased labor productivity through advanced industrial techniques with “living” wages to mollify workers and help create a market for the things they produced.
Fordism rose alongside US imperialism’s domination on the world stage, becoming the model for capitalist production across the planet.
But now, Ford is no longer the crown jewel of American industry. Earlier this year, China’s leading automaker, BYD, surpassed the company in worldwide sales for the first time ever. In an effort to become competitive again, Ford is looking to adopt the Chinese model.
After a recent trip to China, Ford CEO Jim Farley said, “It’s the most humbling thing I’ve ever seen, 70% of all EVs in the world are made in China … They have far superior vehicle technology.” In the same interview, Farley proposed an ambitious project to build a $30,000 electric vehicle. This will require a licensing agreement with China’s biggest EV battery company CATL.
BYD’s rise has come as a shock to Western capital. When Elon Musk was asked about competition from BYD in 2011, he laughed. Musk and co. didn’t see it as a serious competitor.
He’s not laughing now. Last year, BYD blew past Tesla in worldwide EV sales, with 2.26 million compared to Tesla’s 1.64 million. It’s now the third largest automaker by market capitalization and sixth in terms of units sold. BYD’s new $8,000 EV, the Seagull, got favorable reviews from American testers. There are plans for the model to be sold in Europe, but 100% tariffs mean you won’t see a Seagull on American streets anytime soon.
Exports are an increasingly important segment of BYD sales as domestic competition increases. Last year, BYD sold over a million units outside China and aims to sell 1.5 million in 2026. It is now the biggest EV seller in Mexico with 70% of EV and plug-in hybrid electric vehicle sales—despite massive US pressure on Mexico to limit trade with China.
BYD’s meteoric rise doesn’t have a singular cause, but one factor is state intervention in the Chinese economy. The state pushed for more investment in key sectors like AI, renewables, and EVs. As far back as 2008, BYD saw EVs as a way into the international car market, while avoiding investment in gas cars.
Vertical integration within BYD means that most major components including batteries, motors, and electronics are made in house, as are its custom barges capable of delivering over a million cars annually. Finally, a focus on research keeps them ahead of their competition—one out of every nine BYD employees works in research and development.
Ford may look to the Chinese model, but they won’t catch up to BYD without heavy state intervention and a focus on long-term investment over short-term profits. But the US capitalist class is completely incapable of this. To compete with Chinese industry again, workers must take control of American industry and completely overhaul it along socialist lines.