The U.S. Department of Transportation has sharply criticized Ford Motor Co. over its business partnerships with Chinese companies, citing national security risks tied to technology dependencies and supply chain vulnerabilities. In a letter dated Tuesday, U.S. Transportation Secretary Sean Duffy expressed grave concerns regarding Ford’s relationships with CATL, a leading Chinese battery manufacturer, and automakers Geely and BYD, which have significant influence over the company’s operations and future plans.
Ford has not yet responded to the criticism. The company’s stock declined by over 4% on Tuesday. Duffy’s letter highlights Ford’s reliance on licensed CATL technology in its Marshall, Michigan plant—a critical production hub—and warns that the joint venture with Geely in Spain could empower rivals to gain market footholds in Western markets. Additionally, ongoing discussions with BYD over hybrid vehicle components risk deepening Ford’s integration of subsidized foreign technology into its supply chains.
The letter also criticizes Ford’s decision to shift production of the Lincoln Nautilus from China to the U.S. starting in 2030, arguing that this shift creates an unacceptable multi-year window of dependence on Chinese manufacturing. The move follows broader U.S. efforts to reduce reliance on foreign supply chains, particularly in high-tech and automotive sectors.
