The automotive industry is abuzz with controversy as Transportation Secretary Sean Duffy has publicly criticized Ford Motor Co. for its growing ties with Chinese companies. In a letter addressed to Ford CEO Jim Farley, Duffy expressed profound concerns about the automaker’s strategic alliances with Chinese state-backed enterprises, citing potential threats to national security and American manufacturing.
The letter, sent on September 3, 2026, and made public on September 8, 2026, marks one of the most vocal rebukes from the Trump administration towards a major American automaker. Duffy’s concerns revolve around Ford’s use of licensed battery technology from Chinese manufacturer Contemporary Amperex Technology Co. Limited (CATL) and its joint venture with Chinese-owned Geely in Spain.
National Security and Economic Concerns
Duffy’s letter highlights two primary concerns: the potential for Chinese law to require companies to provide government access to proprietary and customer data, and the impact of increased reliance on Chinese manufacturing on American workers. The secretary pointed to several examples, including Ford’s use of CATL technology at its BlueOval Battery Park in Marshall, Michigan, and its joint venture with Geely.
The letter also mentions Ford’s reported discussions with BYD over hybrid vehicle components and the company’s delayed plans to reshore Lincoln models, such as the Nautilus, which Duffy argues could extend until 2030. These moves, according to Duffy, deepen Ford’s reliance on Chinese supply chains and help strategic competitors expand their influence in the global auto industry.
Ford’s Response and Defense
Ford has sharply disputed Duffy’s accusations, calling the letter a “wrongheaded attempt to capture headlines at the expense of a company that has done more for American manufacturing than virtually any other in the nation’s history.” The automaker emphasized that the BlueOval Battery Park Michigan facility is owned and operated by Ford, representing billions of dollars in investment and expected to create about 1,700 American jobs.
Ford also clarified that its agreement with CATL is a “limited technology-licensing and services agreement,” not a joint venture or foreign-owned manufacturing operation. The company pointed out that Duffy’s letter contains factual errors and noted that the White House highlighted the Marshall battery project in a recent press release. Ford also referenced recent comments from Commerce Secretary Howard Lutnick praising the company’s decision to expand Lincoln production in the United States.
The Broader Context
The controversy comes as lawmakers and the auto industry push for tighter restrictions on Chinese involvement in the U.S. automotive market. In July, the Senate Commerce, Science and Transportation Committee approved bipartisan legislation to ban the import, sale, and operation of vehicles manufactured by companies designated as foreign entities of concern, including firms based in China. The measure would also prohibit certain connected vehicle technologies developed by those countries.
Separately, the Alliance for Automotive Innovation urged congressional leaders in September to enact a permanent ban on Chinese-made vehicles in the United States. This backdrop underscores the growing tensions and concerns about the influence of Chinese automakers in the global market.
As the debate continues, the automotive industry watches closely to see how these developments will shape the future of manufacturing and innovation in the United States.
