U.S. Transportation Secretary Sean Duffy sent Ford CEO Jim Farley a letter Tuesday urging the automaker to cut ties with major Chinese companies as political pressure over Chinese vehicles and automotive technology intensifies.
The details: The letter, which cited national security concerns over Ford's reliance on Chinese technology and manufacturing, highlighted three areas of concern, as highlighted by Quartz.
One involves Ford's use at a Michigan battery plant of licensed technology from Contemporary Amperex Technology Co. (CATL), a company banned by the Department of War.
A second involves Ford's new partnership with Chinese automaker Geely Auto to jointly manufacture low- and zero-emission vehicles at its factory in Valencia, Spain.
The third concern cited in Duffy’s letter is Ford's decision to delay moving production of the Lincoln Nautilus from China to the U.S. until 2030.
“The prioritization of imported Chinese technical expertise and operational know-how-even in a scaled-back capacity-challenges the spirit of American national and economic security and supply-chain independence policies,” the letter said, with Duffy adding that the decision to delay the production shift of the Nautilus “leaves an unacceptable, multi-year window of reliance on Chinese manufacturing,” according to Al Jazeera.
Why it matters: Growing federal scrutiny of Ford's Chinese partnerships could pressure the automaker to rethink parts of its manufacturing and technology strategy, potentially influencing future vehicle development, production costs, and product plans that ultimately affect its U.S. dealer network.
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Between the lines: Duffy’s letter underscores the increasingly firm stance U.S. policymakers are taking toward Chinese vehicles, technology, and business ties across the domestic auto industry.
A bipartisan proposed House bill—introduced by Reps. Diana Harshbarger (R-Tenn.) and Debbie Dingell (D-Mich.)—would direct the U.S. Secretary of Commerce to study security risks posed by China.
A bipartisan proposed Senate bill—introduced by Sens. Elissa Slotkin (D-Mich.) and Bernie Moreno (R-Ohio)—currently sets a 15% cap on Chinese ownership for automakers selling connected vehicles.
Ford has pushed back against Duffy’s criticism, defending its U.S. manufacturing investments and emphasizing that its CATL arrangement is a technology licensing agreement rather than a joint venture, while also noting that it owns and controls the Michigan battery plant that uses the CATL technology and employs its workforce, per Al Jazeera.
Bottom line: The scrutiny surrounding Ford signals that Washington's focus on China’s role in the U.S. auto industry is deepening, potentially forcing manufacturers to rethink global supply chains and product strategies with downstream implications for dealer costs, vehicle availability, and future lineups.
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