In a letter sent Tuesday, Transportation Secretary Sean Duffy warned Ford Motor Co. that its ongoing relationships with Chinese firms raise “profound concern” for American manufacturing and national security. The correspondence, addressed to CEO Jim Farley, singled out the automaker’s licensing agreement with Chinese battery maker CATL and a proposed framework at the Detroit Auto Show that Duffy described as an effort to “facilitate Chinese joint ventures on United States soil.”
Administration’s rationale
President Trump’s administration has made it a priority to ensure that American automakers produce vehicles and components domestically. The letter emphasized that Ford’s “strategic decisions paint a troubling picture of a foundational American brand actively intertwining its future with Chinese state‑backed enterprises.” By highlighting the BlueOval Battery Park in Marshall, Michigan, the administration underscored the importance of jobs that the plant currently provides – roughly 1,700 positions producing batteries for U.S.‑built vehicles.
Ford’s response
Ford quickly rebutted the accusations, calling the letter a “wrong‑headed attempt to capture headlines at the expense of a company that has done more for American manufacturing than virtually any other in the nation’s history.” The automaker clarified that the CATL arrangement is a limited technology‑licensing and services agreement, not a joint venture or foreign‑owned operation. “Ford owns the plant, controls the operation and employs the workforce,” the company said, noting that the Michigan facility produces batteries made in the United States.
Regarding the Detroit Auto Show, Ford denied proposing any framework that would enable Chinese joint ventures on U.S. soil. The company also pointed out that its plan to shift production of certain Lincoln models from China to the United States has been delayed until 2030, a timeline it says reflects careful market planning rather than reliance on foreign manufacturing.
Broader context
The exchange comes as the Trump administration tightens auto tariffs, including recent measures aimed at Canadian manufacturers, to pressure all automakers to keep production home. While President Trump previously welcomed Chinese automakers to the U.S., saying “let China come in,” his team now stresses that any partnership must respect American jobs and security.
Industry experts told CNN that Chinese car makers already dominate global production and could appear in U.S. showrooms within five to ten years. The administration’s stance seeks to pre‑empt such a shift by reinforcing domestic supply chains and protecting American workers.
Looking ahead
Secretary Duffy indicated a willingness to discuss Ford’s U.S. commitment further, stating that a direct conversation could provide more detail about the company’s plans. Ford replied that it would be “happy to share more details” if approached before the letter went public.
As the debate over foreign involvement in the American auto industry continues, the Trump administration remains firm that protecting U.S. jobs and ensuring that American brands remain truly American are essential to the nation’s economic security.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
