Ford targeted by US Transportation Secretary over Chinese ties

US Transportation Secretary Sean Duffy has urged Ford Motor Company CEO Jim Farley to sever ties with Chinese companies, citing “profound concern” over the automaker’s strategic dependencies. In a letter sent on September 8, Duffy expressed alarm regarding Ford’s licensing agreement with CATL for battery production in Michigan, as well as the company’s delayed transition of Lincoln production out of China and a joint venture with Geely at a plant in Valencia, Spain.

Duffy stated that when a company intentionally deepens operational dependencies on strategic competitors, it fails to act as a “reliable partner” for the American public and the Department of Transportation. While the Secretary did not allege any legal violations, the move highlights growing political pressure on US automakers to disentangle from Chinese supply chains. Ford responded by calling the letter a “wrongheaded attempt to capture headlines.”

The dispute coincides with regulatory shifts in Europe. The European Parliament is considering the Industrial Accelerator Act, which would mandate that investors from dominant global markets enter joint ventures with EU entities, capping their stakes at 49% and requiring technology transfers to European partners.