Farley Takes Aim at Japan and South Korea's Auto Advantage

Ford CEO Jim Farley fired a shot at Japanese and South Korean automakers during the company's second-quarter earnings call, arguing they have an unfair advantage due to strong local supply chains, weak currencies, and low tariffs.

Farley noted that roughly 90% of the Chevrolet and Buick subcompact sport-utility vehicles built in South Korea are exported to the United States. He also pointed out that the Japanese yen has fallen to a 40-year low, making it cheaper for manufacturers like Toyota to export vehicles to the US.

Farley believes the ongoing renegotiation of the USMCA presents an opportunity to reshape the competitive landscape in Ford's favor and create a more level playing field. He wants to see tariffs adjusted to better reflect the advantages enjoyed by foreign automakers.