^{Source: The Drive}

Learning by Driving the Competition

In the high-stakes global electric vehicle (EV) industry, top executives are doing more than reviewing reports and data—they're getting behind the wheel. Jim Farley, CEO of Ford Motor Company, revealed that he personally test-drove Chinese electric vehicles (EVs), including one from Xiaomi, in a bold move to understand what the competition is doing right.

In an address at Stanford University in March 2024, Farley explained how firsthand experience with competitors’ cars gave him deep insights into where Ford stands—and where it lags. “We flew one in from Shanghai to Chicago,” Farley recalled, “and I’ve been driving it for six months now. I don’t want to give it up.”

Ford’s $50 Billion EV Bet

Farley's deep dive into the competition is part of a much broader and ambitious strategy. Ford has committed more than $50 billion through 2026 to transition from internal combustion engines to electric powertrains. Yet, despite this massive investment, U.S. automakers continue to face steep competition from global players—most notably BYD, the Chinese automaker backed by Warren Buffett, and Tesla, the global EV giant led by Elon Musk.

According to Counterpoint Research, BYD sold over 3 million EVs globally in 2023, outpacing Tesla in Q4 deliveries. Meanwhile, Ford's EV sales were just shy of 100,000 units last year, showing a clear need for acceleration in both innovation and strategy.

Why Xiaomi’s Car Was a Wake-Up Call

While Xiaomi is better known for smartphones and consumer tech, it launched its first EV, the SU7, to much attention in China in 2024. Priced starting at around $30,000, the SU7 boasts features that rival those of far more expensive Western EVs—offering cutting-edge tech, intuitive UI, and superior build quality at scale.

Farley’s experience driving a Xiaomi EV was more than a tech demo—it was a moment of reflection. “Their strengths reveal to you your weaknesses,” said leadership expert Simon Sinek, who champions the concept of “worthy rivalry”—a strategy that encourages leaders to learn from those who outperform them in certain areas.

Leadership Insights from Business Icons

Farley's approach aligns with practices followed by other iconic business leaders. Jim Sinegal, co-founder of Costco, frequently visits Trader Joe’s not to shop but to observe consumer behavior and competitive merchandising. “They’re fantastic at private labeling,” Sinegal admitted to The Wall Street Journal in April 2024.

Simon Sinek, a best-selling author and renowned leadership consultant, elaborated on the idea in a recent video: “Find another player who is as good or better than you at some things. Let their strengths reveal your weaknesses—and use that as your path forward.”

Don’t Ignore Your Strengths, Says Expert

While studying competitors is critical, some experts caution against over-focusing on weaknesses. Marcus Buckingham, a leadership strategist and former Gallup researcher, wrote in CNBC Make It that professionals and executives should double down on their existing strengths rather than spending too much energy on areas where they lag.

“People will tell you the best way to grow is to fix your weaknesses. That’s not true,” Buckingham wrote. “Excellence comes from mastering your strengths.”

Trade Tensions Add a New Layer

Farley’s exploration of Chinese EVs predates a tense political backdrop. In April 2024, President Donald Trump announced sweeping tariffs on Chinese-made EVs and parts, escalating trade tensions and complicating cross-border collaboration or even research.

Still, Farley’s willingness to learn from China—despite the geopolitical pressure—signals his commitment to taking Ford from a legacy automaker to a global EV powerhouse.

Drive to Learn, Learn to Lead

Farley’s unconventional approach—literally driving the competition—is a potent lesson in hands-on leadership. In an industry defined by rapid innovation, regulatory hurdles, and global competition, the best leaders may be those who are willing to roll up their sleeves, or in this case, buckle up in a rival’s car.

As Ford continues to refine its EV strategy, it’s clear that its CEO is determined to avoid complacency—and instead lead through understanding, observation, and adaptation.

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