Ford Motor CEO Jim Farley expects the auto industry’s ongoing transition to electric vehicles to force major consolidation among automakers and suppliers in the years ahead…

He said there will be more acquisitions, compared with the partnerships or joint ventures that are more common today. Legacy automakers and suppliers, he said, “absolutely will get consolidated.”…

Farley expects Chinese EV companies to gain an edge over U.S. players.

“There’s a shakeout coming, and I feel like that shakeout is going to favor many of the Chinese new players,” he said, without naming any start-ups…

To make EVs more affordable while staying profitable, Ford and other traditional automakers will need to cut down on costs.

Farley said Ford estimates that Tesla’s direct-to-consumer sales model costs $2,000 less than what Ford spends on selling through its franchised dealers.