Ford Motor Company is facing formal pressure from the Trump administration over its business partnerships with Chinese automotive companies, with U.S. Transportation Secretary Sean Duffy urging CEO Jim Farley to immediately sever ties with CATL, Geely and BYD.
Duffy Criticizes Ford’s China Partnerships
In a letter sent to Farley on Tuesday, Duffy expressed profound concern over Ford’s relationships with the Chinese companies, according to a Reuters report. The transportation secretary specifically raised concerns about Ford’s reliance on CATL-licensed technology for its upcoming battery plant in Marshall, Michigan.
Duffy noted that CATL currently sits on a Pentagon list of companies accused of having military ties. He also sharply criticized Ford’s decision to continue manufacturing the Lincoln Nautilus in China until at least 2030.
The administration also scrutinized Farley’s pitch at the Detroit auto show earlier this year to facilitate joint ventures on American soil. The pressure comes as policymakers in Washington push to tighten restrictions on foreign vehicles entering the U.S. market.
Ford Pushes Back Against the Administration
Ford quickly responded to the letter, describing it as a wrongheaded attempt to generate political headlines. The automaker defended its strategy by emphasizing that it completely owns the Michigan facility, controls its operations and employs an American workforce.
Ford also pointed to its investment in domestic battery production, while noting that competitors still rely on imported technology.
The dispute comes shortly before President Donald Trump is scheduled to meet with Chinese President Xi Jinping. At the same time, a major automaker lobbying alliance has urged Congress to ban Chinese connected vehicles entirely and deny any waivers for competitors.
The Challenge of Global Automotive Supply Chains
The debate over Ford’s partnerships highlights the difficulties automakers face in building completely independent domestic supply chains. Establishing such supply networks takes years of development and immense capital investment.
Ford’s overseas partnership with Geely reflects the economic pressures facing global automakers, as such collaborations provide economies of scale that cannot simply be ignored. Manufacturers must balance government mandates with the need to remain viable in global markets.
While lawmakers view strategic dependencies on Chinese companies as national security risks, manufacturers view those relationships as necessary bridges until domestic infrastructure can fully support the automotive transition.
As the Trump administration increases scrutiny of Ford’s Chinese partnerships, the automaker continues to defend its approach while emphasizing its ownership, operations and investments in domestic battery production.
