Ford has been building its America-first credentials for years, more hourly workers in the U.S. than any other automaker, its own battery plants, its own workforce. The Trump administration just publicly said that story doesn't add up.
What Set This Off
Transportation Secretary Sean Duffy sent CEO Jim Farley a letter this week expressing "profound concern" over Ford's ties to Chinese companies, specifically its licensing agreement with battery maker CATL, its dealings with Geely and BYD, and Farley's own comments earlier this year floating a framework for Chinese joint ventures on U.S. soil.
While DOT recognizes the intense competitive pressures of the global market, the Company's recent strategic decisions paint a troubling picture of a foundational American brand actively intertwining its future with Chinese state-backed enterprises.
The Specific Complaints
CATL licensing — Ford's Marshall, Michigan battery plant uses licensed technology from CATL, a company the Pentagon has flagged for ties to China's military
The Lincoln Nautilus — Duffy criticized Ford's decision not to move Nautilus production out of China until 2030
The joint-venture pitch — Duffy referenced Farley's comments at January's Detroit auto show floating Chinese joint ventures operating on U.S. soil
Ford's Response Didn't Hold Back Either
Duffy's letter is a wrongheaded attempt to capture headlines. While others continue to import Chinese batteries, Ford is investing to build batteries here in America. Ford owns the plant, controls the operation and employs the workforce.
Ford also disputed the accuracy of Duffy's characterization of the joint-venture comments, calling out what it described as factual errors in the letter itself, and noted it employs more hourly autoworkers in the U.S. than any other manufacturer.
Why the Timing Isn't a Coincidence
This didn't happen in a vacuum. Just last week, major automakers, including Ford, formally urged Congress to pass a permanent ban on Chinese connected vehicles before the year's out, and to specifically block BYD and other Chinese automakers from receiving any waivers to sell in the U.S. Trump is also set to meet with Chinese President Xi Jinping later this month.
Ford is now caught in an odd position: publicly pushing for tougher restrictions on Chinese competitors in Washington, while simultaneously defending its own operational partnerships with Chinese suppliers as smart business, not a security risk.
The line between "using Chinese technology to compete" and "depending on Chinese technology to survive" is exactly the fight playing out here.
Ford's argument is straightforward: owning the plant and the workforce is meaningfully different from importing finished Chinese batteries wholesale. The administration's argument is just as straightforward: licensed technology from a Pentagon-flagged company is still a dependency, no matter who's operating the factory floor. Both arguments are coherent. Only one of them is going to shape the next round of policy heading into Trump's meeting with Xi this month, and Ford just found out it may not get to choose which one wins.
