Ford announces $1 billion U.S. manufacturing investment

Ford Motor Company has announced a $1 billion investment to construct a new paint shop at its Kentucky truck plant, aimed at strengthening domestic manufacturing capacity. The project, which is expected to break ground by the end of this year, will replace existing production lines at the Louisville facility, a key site for the F-Series Super Duty trucks and large SUVs.

This announcement follows conflicting signals from the U.S. government. U.S. Transportation Secretary Sean Duffy recently criticized Ford for its ties to Chinese entities such as CATL, Geely, and BYD, suggesting these connections could jeopardize national security and the American supply chain. Ford responded by calling these claims “exaggerated and untrue,” emphasizing its long-standing commitment to U.S. manufacturing.

Simultaneously, market volatility has hit major automakers following reports from Senator Elissa Slotkin regarding potential shifts in trade policy. Slotkin suggested that the Trump administration might consider easing restrictions on Chinese vehicles as part of upcoming diplomatic negotiations with China. Following these reports, shares of Ford, General Motors, and Stellantis saw declines ranging from approximately 2% to 4%.