Dearborn-based legacy automaker Ford Motor Co F reportedly deems Chinese electric vehicle makers a looming threat that will eventually threaten their business in the United States.

Chinese EV Makers: A Looming Threat During a panel discussion on disruptive technology in Detroit, Ford’s EV unit’s chief operating officer Marin Gjaja declared Chinese EV makers a “colossal strategic threat,” Bloomberg reported. Gjaja pointed out that Chinese EV makers are ahead in technology and may circumvent the heavy tariffs by purchasing factory space in Mexico.

“We look at that (Chinese EVs) and say, ‘That’s coming here eventually, so we’d better get fit now and better get going on EVs or we don’t have a future as a company,” Gjaja said. Mexico, the executive observed, presents a supplier base, low cost of construction and labor, and a trade agreement that gives access to the U.S. market. Gjaja also referenced reports of Chinese EV giant BYD Co Ltd BYDDY planning a Mexican factory. “They’re going to come here, just as the Japanese ended up here, the Koreans ended up here and the Germans ended up here. It’s a big market,” Gjaja reportedly said.

During Ford’s fourth-quarter earnings call, company CEO Jim Farley highlighted the company’s focus on cost and efficiency to withstand “ultimate competition” from American EV giant Tesla Inc and other Chinese EV makers with more affordable offerings. Farley stated that a “super-talented skunkworks team” developed a low-cost EV platform two years ago, and they have created a flexible platform that will be deployed to various types of vehicles. Tesla CEO Elon Musk also emphasized that, without trade barriers, Chinese EV makers would “pretty much demolish most other car companies in the world.”

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Photo courtesy: Ford