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May 5, 2026 | Inside Ford's California Skunk Works; Chinese automakers land in Canada

May 5, 2026 | Inside Ford's California Skunk Works; Chinese automakers land in Canada

Automotive News Daily Drive May 05, 2026 22 min
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About this episode

Chinese automakers are moving deeper into Canada, with Geely-owned Zeke hiring in Toronto and BYD planning as many as 20 stores with local partners. The conversation also digs into Ford’s California Skunk Works, where about 350 people are developing a secret EV platform with a startup-style, fast-moving culture. Along the way, the discussion touches on Toyota’s in-house AI push and how public dealer groups are leaning harder on used cars and trade-ins as affordability pressures reshape the market.

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Technical Too Afraid to Ask
Company

Protective Asset Protection

"[3.2s] Protective Asset Protection works with dealers to unlock new revenue streams [7.1s] through reliable protection products across most vehicle types."

Protective Asset Protection is a company that helps car dealers sell extra protection products. The idea is to create more income for dealers beyond just selling cars.

Company

Toyota

"[27.4s] Toyota is building its own AI, claiming it's to protect jobs, not replace them. [33.6s] And public dealership groups lean on used vehicles as affordability pressures mount. [38.9s] Plus, we get a glimpse of Ford's California Skunk Works project,"

Toyota is the carmaker in this story. They’re talking about building their own AI so they can keep control of how it’s used and protect jobs.

Topic

Ford's California Skunk Works project

"Plus, we get a glimpse of Ford's California Skunk Works project, [43.0s] where they're developing a new kind of EV. [45.9s] It's not hyperbole to say the future of Ford Motor Company rides on what Alan Clark and his team do."

“Skunk Works” is a term for a team that moves fast to build new technology. In this episode, Ford is using that kind of approach to develop a new EV.

Term

EV

"Plus, we get a glimpse of Ford's California Skunk Works project, [43.0s] where they're developing a new kind of EV. [45.9s] It's not hyperbole to say the future of Ford Motor Company rides on what Alan Clark and his team do."

EV stands for electric vehicle. It’s a car that runs on electricity from a battery instead of gasoline.

Company

Geely

"Chinese automakers are getting serious about entering Canada. [61.2s] Zeke, a luxury brand owned by Geely, started hiring for seven senior positions in Toronto"

Geely is a big Chinese car company. They own the luxury brand Zeke, which is trying to grow in Canada.

Brand

Zeke

"Chinese automakers are getting serious about entering Canada. [61.2s] Zeke, a luxury brand owned by Geely, started hiring for seven senior positions in Toronto [67.2s] late last month. Everything from sales and marketing to network development and legal."

Zeke is a luxury car brand. The hosts mention it because it’s starting to set up operations in Toronto.

Brand

Cherry

"[73.5s] Cherry's been courting dealers too. The company flew nearly two dozen Canadian dealer reps to the [79.2s] Beijing Auto Show."

Chery is a Chinese car brand. They’re trying to line up dealerships in Canada by meeting with dealer reps and bringing test cars to Toronto.

Topic

Beijing Auto Show

"[73.5s] Cherry's been courting dealers too. The company flew nearly two dozen Canadian dealer reps to the [79.2s] Beijing Auto Show. And a couple of Cherry's JQ E5 test vehicles have already been spotted [86.3s] in Toronto with manufacturer plates."

The Beijing Auto Show is a big car event in China. The hosts mention it because Chery brought Canadian dealer reps there to help build relationships.

Company

BYD

"[86.3s] in Toronto with manufacturer plates. BYD says it'll open as many as 20 stores this year with [93.8s] local partners. But don't expect cars on lots anytime soon."

BYD is a Chinese car company. They’re planning to open many stores in Canada, but the hosts say you shouldn’t expect cars on lots immediately.

Term

manufacturer plates

"[79.2s] Beijing Auto Show. And a couple of Cherry's JQ E5 test vehicles have already been spotted [86.3s] in Toronto with manufacturer plates. BYD says it'll open as many as 20 stores this year with [93.8s] local partners."

Manufacturer plates are special plates that identify a vehicle as being associated with the carmaker. In this context, it suggests the cars were official test vehicles, not regular customer cars.

Term

artificial intelligence

"[100.1s] late this year at earliest. Toyota is building its own artificial intelligence [105.5s] instead of partnering with tech giants like Google or Huawei. The goal? Protect jobs and [111.8s] keep manufacturing expertise in-house."

Artificial intelligence (AI) is computer software that can learn and make decisions based on data. Here, Toyota is using AI internally for training and to help evaluate future partners.

Term

AI clone

"[124.9s] potential partners down the road. The company even created an AI clone of the chairman for [131.1s] leadership training. Toyota's comments reveal how the automaker plans to differentiate its AI"

An “AI clone” is an AI system designed to act like a real person—based on their information and style. Toyota says it made one for leadership training.

Term

used vehicles

"[152.4s] but they faced stiff competition from Carvana which sold more than 187,000 vehicles, [172.0s] over 80,000 more than top-selling Lithia."

Used vehicles are cars that someone owned before and are being sold again. The hosts are saying people are turning to used cars because new cars cost too much.

Company

Lithia

"[158.3s] Penske, Lithia, Sonic, and AutoNation sold more used cars in the first quarter year over year, [164.8s] but they faced stiff competition from Carvana"

Lithia is a big dealership company. In this story, it’s included among companies that are selling more used cars to help shoppers afford vehicles.

Company

Penske

"[158.3s] Penske, Lithia, Sonic, and AutoNation sold more used cars in the first quarter year over year, [164.8s] but they faced stiff competition from Carvana"

Penske is a big company in the car business. Here, they’re being mentioned because they sell lots of used cars.

Company

AutoNation

"[158.3s] Penske, Lithia, Sonic, and AutoNation sold more used cars in the first quarter year over year, [164.8s] but they faced stiff competition from Carvana"

AutoNation is a big dealership business. They’re mentioned because they’re selling more used cars when new cars get too expensive.

Term

interest rates

"[192.4s] Yeah, so the affordability crisis isn't new. Car prices are high. They're not necessarily [197.2s] going up, but they're still high and they're also not going down. Interest rates are still high."

Interest rates are the cost of borrowing money. Higher rates make car loans more expensive, so monthly payments go up.

Term

monthly payments

"[202.9s] Those are also not going down anytime soon. And that translates to pretty high monthly payments. [209.3s] And that's created a scenario where there's this bubble of consumers"

Monthly payments are what you pay each month to finance a car. If they’re too high, some people can’t buy a new car and look at used options instead.

Concept

late model, low mileage used cars

"[227.9s] what are those buyers doing now that they've kind of been priced out? And that's turning to [233.4s] used cars, particularly late model, low mileage used cars. [238.7s] And that's something the public dealership groups really see"

This means used cars that are newer and haven’t been driven much. They cost less than brand-new cars, but they’re still in good shape, so they’re popular when new cars are too expensive.

Concept

auctions

"[300.6s] And I assume that that forces them to figure out how they're going to source these used vehicles, [305.8s] right? Whether it's going to be auctions, whether it's going to be trade ins, [308.8s] how are they thinking about that?"

Auctions are where dealers bid to buy used cars from other sellers. The prices can swing around, so dealers watch auction costs closely when deciding how to make money.

Concept

volume versus margins game

"[300.6s] And I assume that that forces them to figure out how they're going to source these used vehicles, [305.8s] right? Whether it's going to be auctions, whether it's going to be trade ins, [308.8s] how are they thinking about that? Yeah, so it's a kind of a volume versus margins game."

It’s basically a trade-off: sell many cars and make a little profit on each, or sell fewer cars and make more profit on each. When used-car profits are small, the way a dealer buys cars becomes really important.

Concept

trade ins

"[331.9s] But you know, one thing that came up in a lot of the calls is like, [335.1s] they do make more money on trade ins than they do at the auctions, you know, because often they're [341.2s] paying very competitive prices for the trade ins."

A trade-in is when you turn in your current car to help pay for the next one. Dealers often prefer trade-ins because they may be able to get the car for a better price than buying it at an auction.

Company

Asbury Automotive

"[369.0s] a time when, you know, used vehicle margins are not giant, you know, they've been tightening for a [375.5s] little while. And that's stabilizing. And, you know, Asbury Automotive even saw their margins go [381.5s] up a little bit in the first quarter."

Asbury Automotive is a dealership group whose reported margin changes are used as an example of how tight (but sometimes improving) used-car profitability can be. Mentioning its first-quarter results ties the discussion to real-world financial performance in the retail used-car market.

Company

Carvana

"[405.0s] Yeah. So there's, you know, no mistaking that the used vehicle market is really competitive right [409.8s] now. And the publics know that. And, you know, one of their biggest competitors is Carvana, [415.1s] who also just reported earnings."

Carvana is a company that sells used cars, mostly through an online-first model. The episode mentions its earnings to show how tough and competitive the used-car business is right now.

Concept

Model T moment

"where a team isolated from Dearborn is building what Jim Frally calls Ford's next Model T moment."

The “Model T moment” is a comparison to the original Ford Model T, which changed how many people could afford cars. They’re saying Ford thinks it has another game-changing idea coming.

Car

Ford Model T

"...rn is building what Jim Frally calls Ford's next Model T moment. That's next on Daily Drive. Dealerships ..."

The Ford Model T was an early Ford car that became very important in making cars more common. The podcast uses it as an example of a big “turning point” in car history. The idea is that something new could be as influential as the Model T was back then.

Term

vehicle protection plans

"For more than 60 years, protective asset protection has worked alongside dealerships across the country, delivering trusted FNI solutions like vehicle protection plans, maintenance programs, limited warranties, guaranteed asset protection, and more, helping dealerships generate revenue while helping customers protect what matters most."

Vehicle protection plans are aftermarket coverage products sold through dealerships to help pay for certain repairs or coverage beyond the factory warranty. They’re a common part of dealer “protection” revenue and can vary widely in what they cover.

Term

FNI solutions

"For more than 60 years, protective asset protection has worked alongside dealerships across the country, delivering trusted FNI solutions like vehicle protection plans, maintenance programs, limited warranties, guaranteed asset protection, and more, helping dealerships generate revenue while helping customers protect what matters most."

“FNI” is an acronym used in dealership finance and insurance, referring to the F&I department’s products and services. In this context, it’s tied to protection and coverage offerings sold alongside vehicle sales.

Term

limited warranties

"delivering trusted FNI solutions like vehicle protection plans, maintenance programs, limited warranties, guaranteed asset protection, and more, helping dealerships generate revenue while helping customers protect what matters most."

A limited warranty is coverage that only applies to certain things and only for a certain period. It’s not a guarantee that every problem will be covered.

Term

guaranteed asset protection

"delivering trusted FNI solutions like vehicle protection plans, maintenance programs, limited warranties, guaranteed asset protection, and more, helping dealerships generate revenue while helping customers protect what matters most."

Guaranteed Asset Protection (GAP) is coverage that can pay the difference between what you owe on a financed/leased vehicle and what the vehicle is worth if it’s totaled or stolen. It’s designed to protect the “asset” value from depreciation and loss scenarios.

Concept

EV platform

"they wanted to give them the opportunity to build this vehicle and this EV platform like a startup. Fail fast, break things, fix it, try again. So you see a real difference in terms of the co-location of some of the teams, in terms of the"

An EV platform is the shared engineering “foundation” for an electric vehicle—things like the battery layout, power electronics integration, wiring architecture, and structural design. Using a common platform helps automakers develop multiple EVs more efficiently.

Concept

Fail fast, break things, fix it, try again

"they wanted to give them the opportunity to build this vehicle and this EV platform like a startup. Fail fast, break things, fix it, try again. So you see a real difference in terms of the co-location of some of the teams, in terms of the"

This is a development style where teams try ideas quickly, learn from what doesn’t work, and improve. The goal is to get to a better final result with fewer surprises later.

Concept

vehicle dynamics

"[726.3s] the Ford folks, they've needed the vehicle dynamics, the plant manager operation type people [733.2s] to come in and help them, but everybody who works at Ford needs to interview"

Vehicle dynamics is the engineering discipline that studies how a car behaves—handling, stability, ride/traction balance, and how the chassis responds to steering and braking. The segment says Ford needed vehicle-dynamics people to support the program as development progressed.

Company

Tesla

"[741.9s] So we got a chance to talk with Alan Clark who Ford poached from Tesla about four years ago. [748.0s] He's in charge of this Skunk Works team and he shared some thoughts about how they are interviewing"

Tesla is mentioned because Alan Clark previously worked there. The point is that Ford hired him from a more EV-focused company to lead a new project.

Concept

cultural clash

"[784.7s] How is Clark managing the cultural clash between these outsiders and Ford veterans? [791.8s] Yeah, as we've seen time and time again over the past decade or so when a legacy automaker tries to"

“Cultural clash” describes friction that can happen when teams with different backgrounds, values, and working styles are forced to collaborate. Here, the outsiders from EV startups and tech companies are contrasted with Ford veterans, and the host asks how leadership manages that tension.

Concept

empathy

"[811.6s] almost as important as everything they're doing in this building is the psychology [816.6s] of how they do it and how they do it together. So he says he tries to lead with empathy. [822.2s] And you create empathy by understanding people's mindset."

In this context, “empathy” is leadership behavior used to reduce friction between groups by understanding how others think and what motivates them. The segment frames it as a practical management tool for integrating new tech talent with established employees.

Concept

face-to-face interactions

"[828.4s] interactions. He says he'll call up the Dearborn team to bring them to Long Beach, California [833.7s] to draw on whiteboards and talk and debate and yell at each other and vice versa. He brings [840.3s] his California team to Michigan to Kentucky where they will be building the first vehicle on this [846.1s] platform. and he's interesting. I thought it was a fascinating conversation. He said you never make [852.4s] more progress than when you are sitting down face-to-face as humans and it helps you understand"

“Face-to-face interactions” refers to in-person collaboration as a deliberate process choice, rather than relying solely on remote communication. The segment claims this approach improves progress and helps teams understand each other’s perspectives during development.

Company

Dearborn team

"[828.4s] interactions. He says he'll call up the Dearborn team to bring them to Long Beach, California [833.7s] to draw on whiteboards and talk and debate and yell at each other and vice versa."

“Dearborn team” refers to Ford’s internal group based in Dearborn, Michigan, which is Ford’s historic headquarters area. The segment uses it to illustrate cross-location collaboration for the program.

Company

Ford Motor Company

"This is their answer to the Chinese which Farley has said is an existential threat to the company. It's not hyperbole to say the future of Ford Motor Company rides on what Alan Clark and his team do and he recognizes that."

They’re talking about Ford as a company, not just a specific car. The hosts say Ford feels intense pressure from competitors, and they believe the company’s future depends on what this team builds next.

Term

Newtonian physics

"...they said well that's really just a reminder that the only real limit is physics. We can't do things if it doesn't physically work based on Newtonian physics so it's a cheeky little reminder to the team."

They’re using “Newtonian physics” as a reminder that real-world physical laws still apply. In other words, if something can’t work in a real, physical sense, you can’t build it just because it sounds good on paper.

Term

software in-house

"I'm also interested in the fact that Ford is developing all the software in-house for the first time. What did you see in terms of how they're set up differently to make that work?"

They’re saying Ford is building its software internally. That can help the company coordinate changes faster—like when the battery design changes and the rest of the car needs to be updated to match.

Concept

co-locating everyone under one roof

"It's a simple idea but it's the idea of co-locating everyone under one roof from the start of the development to the end. You have some marketing folks there, you have engineering, design, supply chain, everybody coming together and sitting next to each other..."

They’re describing a development approach where different teams sit together in the same place. That way, if one team changes something (like the battery), other teams can quickly adjust their work too.

Term

battery team

"...so for example we talked to the battery team who said throughout this development they're changing the number of cells in the battery and that affects the size of the vehicle..."

They mention the battery team, meaning the engineers working on the car’s battery pack. Changing the battery’s internal cell count can change the battery size and how the whole car runs.

Term

number of cells in the battery

"...they're changing the number of cells in the battery and that affects the size of the vehicle, the size of the battery, how things operate so when they realize they need to change the number of cells..."

A car battery is built from smaller units called cells. If the engineers change how many cells are in the pack, the battery’s size and electrical behavior change, so the car’s electronics and software must be updated to work correctly.

Term

chassis dyno

"lot of testing they have a ton of different labs from battery labs to a full chassis dyno that they can run cars through in different temperatures and different grades of pavement"

A chassis dyno is like a treadmill for a car. The car’s wheels spin on rollers while sensors measure things like power and how the car behaves, so engineers can test changes in a controlled way.

Term

Universal Electric Vehicle Platform

"there's no secret sauce with the UEV platform the Universal Electric Vehicle Platform that this first vehicle and others will ride on"

An electric vehicle platform is the main “build plan” for an EV—how the battery, motors, and key structure are laid out. Ford’s UEV platform is meant to be reused across several different Ford EVs so they can be developed faster.

Car

Ford F150

"Universal Electric Vehicle Platform that this first vehicle and others will ride on they said this can be applied to F-150 or Bronco or Mustang or any other Ford product it's not just because it's an EV what we're doing you can do with your vehicle lines and sort of clean up the bureaucracy and"

The Ford F-150 is a large pickup truck made by Ford. The podcast is saying a new shared electric-car design could be used on the F-150 too. That would help Ford build electric versions using the same basic technology across different models.

Car

Ford Bronco

"...ide on they said this can be applied to F-150 or Bronco or Mustang or any other Ford product it's not jus..."

The Ford Bronco is an SUV designed to handle rough roads and off-road driving. The podcast says Ford could use the same new electric-car platform on the Bronco as well. This would let Ford apply one EV design approach to more than one type of vehicle.

Car

Ford Mustang

"...y said this can be applied to F-150 or Bronco or Mustang or any other Ford product it's not just because i..."

The Ford Mustang is a sports car made by Ford. The podcast is saying Ford’s new shared electric-car design could also be used for the Mustang. That would mean an electric version could be built using the same core EV approach as other Ford vehicles.

Company

Jim Farley

"Jim Farley was speaking on Ford's first quarter earnings call a few weeks ago and said that the true gift of this team will be how it filters down to the rest of the company"

Jim Farley is Ford’s CEO. Here, he’s talking about how Ford expects this new EV-focused team’s ideas to influence the rest of the company.

Company

Allen Clark

"but for right now Allen Clark for one is sort of laser focused on landing the plane so to speak and making sure that they do earn their right to exist"

Allen Clark is mentioned as someone who’s more cautious about how well this new EV effort will spread through Ford. It’s basically a debate about whether the ideas will actually scale across the whole company.

Term

trickle down

"Well you just mentioned that that Farley seems to be pretty optimistic about what this is going how this is going to trickle down to the rest of the company"

“Trickle down” here means “spread gradually.” The question is whether what the EV team learns and builds will end up changing how the rest of Ford works.

Concept

prototype

"[1185.2s] say Jake it was cool we got a very scripted though but a quick glimpse of a prototype [1190.9s] driving behind us as we were walking from one building to the other heavily camouflaged so you [1196.2s] couldn't really see the design details but it did look like a small truck but the point is"

A prototype is an early version of a car that’s built to test ideas before the real production model exists. They’re saying they haven’t seen enough to judge the final truck yet.

Concept

heavily camouflaged

"[1185.2s] say Jake it was cool we got a very scripted though but a quick glimpse of a prototype [1190.9s] driving behind us as we were walking from one building to the other heavily camouflaged so you [1196.2s] couldn't really see the design details but it did look like a small truck"

When a car is “heavily camouflaged,” it’s covered up so people can’t easily tell what the final design will look like. The company still tests it on the road to see how it drives.

Concept

vehicle number two three four five on this platform

"[1202.2s] we're not going to know if this company succeeded until the truck launches and vehicle number two [1208.4s] three four five on this platform and you got to keep in mind too that as this is Ford's answer to [1215.2s] the Chinese the Chinese aren't going to stop other automakers Tesla, Rivian, GM, Volkswagen"

Companies build several test trucks on the same underlying design so they can try different setups and improvements. The “number two, three, four, five” wording suggests multiple test versions are planned.

Car

Rivian

"[1215.2s] the Chinese the Chinese aren't going to stop other automakers Tesla, Rivian, GM, Volkswagen [1220.9s] they're not stopping either in increasing their efficiency and their speed to market so maybe"

Rivian makes electric vehicles, including trucks and SUVs. They’re mentioned as another company moving quickly with new electric models.

Car

Volkswagen

"[1215.2s] the Chinese the Chinese aren't going to stop other automakers Tesla, Rivian, GM, Volkswagen [1220.9s] they're not stopping either in increasing their efficiency and their speed to market so maybe"

Volkswagen is a major car brand. They’re mentioning it as another automaker trying to move quickly with new vehicles.

Car

GM

"[1215.2s] the Chinese the Chinese aren't going to stop other automakers Tesla, Rivian, GM, Volkswagen [1220.9s] they're not stopping either in increasing their efficiency and their speed to market so maybe"

GM is a big car company. Here it’s mentioned as part of the group of automakers racing to bring new vehicles to market faster.

Concept

speed to market

"[1215.2s] the Chinese the Chinese aren't going to stop other automakers Tesla, Rivian, GM, Volkswagen [1220.9s] they're not stopping either in increasing their efficiency and their speed to market so maybe"

Speed to market means how quickly a company can get a new car from planning into showrooms. The idea is that faster launches can help them sell more before competitors catch up.

Car

Ford Maverick

"[1238.9s] So before I let you go you said you [1238.9s] saw a heavily camouflaged model when you turned around and saw it did were you thinking more hey [1244.8s] is that a Maverick or is that a Ranger? So in the few seconds sneak peek that we got I'll say it [1250.8s] looked more Maverick size than Ranger size"

The Ford Maverick is a smaller pickup truck. Here, they’re trying to guess whether the new prototype looks more like a Maverick-sized truck than a Ranger-sized one.

Car

Ford Ranger

"[1238.9s] So before I let you go you said you [1238.9s] saw a heavily camouflaged model when you turned around and saw it did were you thinking more hey [1244.8s] is that a Maverick or is that a Ranger? So in the few seconds sneak peek that we got I'll say it [1250.8s] looked more Maverick size than Ranger size if you're trying to give some type of bulk park comparison"

The Ford Ranger is a mid-size pickup truck. They’re using it as a comparison to figure out whether the prototype is closer in size to the Ranger or to the Maverick.

Concept

mid-compact

"[1262.9s] I don't know that it'll be that similar but talking size they claim it's a mid-size but [1269.7s] I'd say it's a lot smaller than today's Ranger. A mid-compact maybe new segment. There you go."

“Mid-compact” is a way of describing truck size—bigger than a compact, but smaller than a typical mid-size. They’re saying the new truck might land in a gap between existing categories.

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