U.S. Transportation Secretary Sean Duffy in a letter to Ford CEO Jim Farley criticized Ford Motor’s business partnerships with Chinese companies, including with CATL, Geeely and BYD, saying they posed national security concerns. He urged Ford to cut ties with major Chinese companies. The U.S. Department of Transportation (DOT) was “deeply alarmed” by Ford’s reliance on licensed technology from Chinese battery manufacturer CATL at its plant in Marshall, Michigan, and noted that CATL is on the Pentagon’s list of companies accused of ties to China’s military. He also criticized the company’s decision not to move production of the Lincoln Nautilus from China to the United States until 2030, leaving the company reliant on Chinese manufacturing for several more years. Ford, in a statement, said Duffy’s “letter is a wrong-headed attempt to capture headlines”. The company added that “while others continue to import Chinese batteries, Ford is investing to build batteries here in America” and added that “Ford owns the plant, controls the operation and employs the workforce”.
“When a company intentionally chooses to deepen operational dependencies on strategic competitors, it fails to act as the reliable partner the American public and this DOT require,” Duffy said of Ford. Ford’s deal with Geely faced criticism in July, with the chair of the U.S. House Select Committee on China, Congressman John Moolenaar of Michigan, saying the “partnership with Geely will further enable China’s decimation of auto markets in Europe”. It has also faced criticism for its partnership with CATL.
U.S. President Donald Trump is set to meet with Chinese President Xi Jinping later this month. Duffy’s comments come as Congress is pushing to tighten a ban on Chinese vehicles in the United States. Major carmakers urged Congress to pass the ban before the end of the year and expressly urged lawmakers to bar BYD and other Chinese carmakers from receiving waivers to sell vehicles in the United States, the South China Morning Post reports.
