Trump Administration Condemns Ford Over Business Cooperation with China
The Trump administration is displeased with Ford’s close relationship with several Chinese companies, prompting a sharp rebuke from Ford, which continues to describe itself as the “most American automotive manufacturer.”
This exchange of statements occurs just before the scheduled meeting between US President Donald Trump and Chinese President Xi Jinping later this month, as reported by Carscoops on Friday.
In a letter to Ford CEO Jim Farley dated 3 September, which was recently made public, US Secretary of Transportation Sean P. Duffy expressed “deep concern” regarding Ford’s “strategic direction.”
He claimed that the historic automotive brand is “actively linking its future with Chinese state-backed companies.”
Ford’s relationship with the Chinese battery manufacturer CATL appears to be one of the primary points of contention for the Trump administration. A licensing agreement signed in 2023 allows Ford to produce electric vehicle (EV) batteries using CATL’s chemical technology.
However, a recent decline in EV demand in the US has prompted Ford to begin assembling lithium iron phosphate (LFP) cells using CATL technology for energy storage systems.
“Prioritising imported Chinese technical expertise and operational knowledge, even in a reduced capacity, challenges the spirit of American national security and economic policy, as well as supply chain independence policies,” wrote Duffy.
The letter also referenced ongoing discussions between Ford and BYD regarding the sharing of hybrid vehicle components.
“When a company deliberately chooses to deepen operational dependence on a strategic competitor, that company fails to act as a reliable partner to the American people and the US Department of Transportation (DOT),” Duffy added.
Ford did not take long to respond. The company described Duffy’s letter as a misguided attempt to garner media attention at the expense of a company that has done more for American manufacturing than almost any other in US history.
“BlueOval Battery Park Michigan in Marshall is a Ford-owned and operated facility, representing a multi-billion dollar investment and approximately 1,700 new jobs for Americans,” Ford stated, noting that the facility produces batteries in Michigan, using an American workforce, for Ford vehicles also manufactured in America.