Transportation Secretary Sean Duffy issued a letter Tuesday to Ford CEO Jim Farley voicing “profound concern” regarding the automaker’s strategic partnerships with Chinese enterprises. Duffy cited potential risks to American national automotive manufacturing integrity, supply chain vulnerabilities, and reliance on technologies from foreign adversaries in his written statement.
The secretary specifically referenced Ford’s licensing agreement with battery provider Contemporary Amperex Technology Co. (CATL) and a framework Farley proposed earlier in the year at a Detroit auto show to facilitate Chinese joint ventures on U.S. soil. The CATL deal, originally announced in 2023, involves the production and utilization of lithium iron phosphate battery technologies for energy storage systems. Duffy characterized Ford’s recent strategic decisions as troubling, suggesting the company was actively intertwining its future with Chinese state-backed enterprises.
Ford responded to the letter by rejecting what it called a “wrongheaded attempt to capture headlines.” The automaker defended its record as the top-producing manufacturer in the United States and stated it employs more hourly workers domestically than any competitor. Ford also challenged specific claims in Duffy’s letter, identifying what it characterized as factual errors, including mischaracterizations about proposals for Chinese automaker joint ventures.
The letter represents another escalation in ongoing tensions between the U.S. automotive sector and the Trump administration over trade policy and federal regulatory changes. Duffy urged Farley to reconsider the company’s strategic direction and adopt approaches that prioritize American workers, utilize allied supply chains, and promote domestic industry self-reliance. Ford called for more direct communication with the Transportation Department, stating the company would have provided additional context about its U.S. commitment had Duffy consulted beforehand.
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