Ford's CEO and CFO took a drive in a Chinese EV. What they said about it reveals a lot about the state of the US auto industry.

• The Wall Street Journal detailed a 2023 test drive that Ford execs took in a Chinese electric SUV.

• CEO Jim Farley and CFO John Lawler were apparently shocked and impressed by the quality of the EV.

• "Jim, this is nothing like before," Lawler reportedly told Farley. "These guys are ahead of us."

Ford C-suite executives were left humbled by China's electric-vehicle makers after taking a test drive in a Chinese-made EV last year, The Wall Street Journal reported Saturday.

Ford CEO Jim Farley and CFO John Lawler were visiting China in early 2023 when the pair decided to take Changan Automobile's electric SUV for a spin, per the Journal.

The Chinese state-owned automaker is a longtime joint-venture partner of Ford's.

The quick test drive, in which Farley drove and Lawler rode shotgun, gave the executives a taste of what it was like to ride in a Chinese-made EV.

Farley and Lawler were left both shocked and impressed by how smooth and quiet their drive was, the Journal reported.

"Jim, this is nothing like before," Lawler reportedly told Farley. "These guys are ahead of us."

Farley's fears were piqued again in May when he made another trip to China, the Journal reported.

"John, this is an existential threat," Farley told the Ford board member John Thornton, a former Goldman Sachs executive, after his trip, per the Journal.

Representatives for Ford did not immediately respond to a request for comment from Business Insider sent outside regular business hours.

Chinese automakers like BYD have been dominating the EV race. For one, Chinese carmakers have been making inroads into developing markets like Brazil and Mexico, as well as Southeast Asian countries like Thailand.

According to data compiled by the technology firm ABI Research for Business Insider, Chinese automakers accounted for 88% of the EV market in Brazil and 70% in Thailand in the first quarter of this year.

The rapid ascendance of Chinese-made EVs has prompted Western governments to introduce trade restrictions on them.