US Government Warns Ford Over China Ties
US Transportation Secretary Sean Duffy has issued a public warning letter to Ford CEO Jim Farley, stating that Ford China partnership and reliance on adversary technology is not a sustainable strategy. Duffy criticized recent strategic decisions that entangle a premier American automaker with Chinese state-backed companies, urging management to reduce its dependency.
The Core Controversy: CATL and Global Collaborations
The primary concern raised by the US government involves Ford’s plan to utilize battery technology licensing from Chinese battery giant CATL at a facility in Michigan. Additional criticisms targeted joint vehicle development and contract manufacturing efforts with Geely for European markets, as well as maintaining local production for certain Lincoln models in China.
Ford Fights Back Against Public Criticism
Ford swiftly fired back against the letter, dismissing it as a misdirected attempt to grab media headlines. Company representatives emphasized that the CATL agreement is strictly a licensing arrangement and that the Michigan plant is fully owned by Ford and staffed by American workers. Furthermore, Ford highlighted its massive domestic manufacturing footprint and export volume, noting that the White House had previously acknowledged the value of the battery initiative. Reuters reported that this unprecedented public clash marks a pivotal moment for the US auto industry’s ongoing supply chain realignment.
