""Oh, I think it's exactly the same thing, but it's on steroids," Farley told ''CBS Sunday Morning'' in an interview that aired on October 26. "They have enough capacity in China with existing factories to serve the entire North American market, put us all out of business. Japan never had that," Farley added. "So, this is a completely different level of risk for our industry.""
"Japan was the world's largest producer of automobiles in 1980. The country's automakers produced over 11 million vehicles that year, with companies such as Toyota, Nissan, and Honda trouncing major American car manufacturers such as Ford and General Motors. This led to a trade war between the US and Japan, with the Reagan administration introducing voluntary export restraints on imported vehicles from Japan in 1981. Japanese vehicle exports to the US fell to 1.68 million in 1981 from 1.82 million in 1980, per data from the Japan Automobile Manufacturers Association."
"In June, Farley said at the Aspen Ideas Festival that China's EV progress is the " most humbling thing" he has ever seen. "They have far superior in-vehicle technology. Huawei and Xiaomi are in every car. You get in, you don't have to pair your phone. Automatically, your whole digital life is mirrored in the car," he said."
China's auto industry currently has existing factory capacity sufficient to serve the entire North American market and could displace U.S. automakers. The scale of Chinese manufacturing capacity and technological integration creates a greater competitive risk than Japan's 1980s automotive expansion. China leads in electric-vehicle technology and embeds major technology firms into vehicles, enabling seamless mirroring of occupants' digital lives without manual pairing. Historical precedent shows Japan produced over 11 million vehicles in 1980, prompting U.S. voluntary export restraints in 1981 amid rapid export growth.
Read at Business Insider
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