The U.S. Department of Transportation has expressed serious concerns regarding Ford’s collaborations with several Chinese companies, particularly CATL, Geely, and BYD, citing potential national security risks amidst ongoing trade tensions between the U.S. and China.
In a recent letter to Ford’s CEO, Jim Farley, Transportation Secretary Sean Duffy pointed out that Ford’s partnership with CATL, which focuses on lithium-iron-phosphate battery production in Michigan, undermines American security and supply chain independence. Duffy highlighted that prioritizing Chinese expertise may compromise U.S. economic interests.
He also raised alarms about Ford’s joint venture with Geely in Spain, stating that it provides strategic adversaries with a foothold in Western markets. Furthermore, there are concerns related to discussions with BYD about hybrid vehicle parts, suggesting it could further entrench subsidized foreign technology in Ford’s supply chains.
Despite plans to shift Lincoln Nautilus production back to the U.S. from China by 2030, Duffy deemed this insufficient, stressing the risks of continued reliance on Chinese manufacturing during the transitional period. Ford’s stock price saw a decline of 4.2% following the communication from the DOT, and the company has not issued a public response to these concerns.
