On the Dash:
- Federal scrutiny of Ford’s Chinese partnerships could create new compliance and supply chain risks for dealers.
- Ford’s Michigan battery plant remains a focal point because it uses licensed CATL technology.
- Potential restrictions on Chinese automakers and technology could reshape product sourcing and competitive dynamics in the U.S. market.
Transportation Secretary Sean Duffy sent a letter to Ford CEO Jim Farley on Tuesday, criticizing the automaker’s business relationships with China. Duffy identified Ford’s partnerships with CATL, Geely and BYD as potential national security concerns and urged Ford to reduce its reliance on Chinese companies.
Duffy raised particular concern about Ford’s use of licensed CATL technology at its BlueOval Battery Park in Marshall, Michigan. Notably, the Department of War, the renamed U.S. Department of Defense, lists CATL as a company with ties to China’s military. However, Ford pushed back sharply in a published statement, calling Duffy’s letter “a wrongheaded attempt to capture headlines at the expense of a company that has done more for American manufacturing than virtually any other in the nation’s history.” The company said it owns the Marshall plant, controls its operations and employs its workforce, and it described the CATL arrangement as a limited technology-licensing and services agreement rather than a joint venture or foreign-owned manufacturing operation.
Duffy also criticized Ford’s plan to continue producing the Lincoln Nautilus in China until 2030, arguing that the timeline leaves Ford dependent on Chinese manufacturing for several more years. Ford countered that it’s working with the administration on trade, emissions standards and reshoring manufacturing, including a commitment to increase Lincoln production for U.S. customers.
Ford disputes Duffy’s letter
However, Ford said Duffy’s letter contains factual errors, including a claim that the automaker proposed a Chinese joint-venture framework on U.S. soil. The company said it made no such proposal, and also pointed to a White House press release published Aug. 31 that touted the Marshall battery plant as part of the administration’s manufacturing push in Michigan, and it said it would have shared more details about its U.S. commitment had Duffy reached out before releasing the letter to the press.
Congress is meanwhile considering tighter restrictions on Chinese vehicles entering the U.S. market. The Alliance for Automotive Innovation, which represents Ford, General Motors and other major automakers, urged lawmakers on Sept. 3 to pass legislation banning Chinese connected vehicles, software and hardware before the end of the year. The group also asked Congress to bar BYD and other Chinese manufacturers from receiving potential exemptions.
Ford’s joint venture with Geely, announced in July to build vehicles at Ford’s plant in Valencia, Spain, has also drawn criticism from lawmakers. Duffy’s letter argued the venture helps China “secure a vital foothold in Western markets.” But Ford has said the partnership helps it compete as European buyers increasingly turn to Chinese brands. Combined with the scrutiny over CATL, the developments could increase pressure on automakers to reevaluate their ties to Chinese technology, manufacturing and joint ventures.
Ford said it supports the administration’s manufacturing goals but wants credit for its investments. “Ford believes the United States must compete from a position of strength with American ownership, American jobs, American production and strong national security safeguards,” the company said in its statement. “That is exactly what we are doing across our U.S. manufacturing footprint.”
