US Transportation Secretary criticises Ford over Chinese technology ties and delayed domestic production

Department of Transportation scrutiny

United States Transportation Secretary Sean Duffy published an open letter to Ford Motor Company Chief Executive Officer Jim Farley on 8 September 2026, condemning the automaker for relying on Chinese technology. In the letter, Duffy stated that Ford's recent operational decisions present a troubling trajectory for a domestic manufacturer by linking its commercial operations to state-backed entities in China. Duffy argued that relying on foreign components and overseas manufacturing damages employment prospects for skilled American workers.

Duffy stated that deepening connections with foreign strategic competitors conflicts with federal objectives regarding supply chain self-reliance and economic security.

When a company chooses to deliberately deepen its operational dependencies on strategic competitors, it ceases to be the reliable partner that the American public and the Department of Transportation require.

Battery licensing and overseas partnerships

The transportation department's letter focused on several specific commercial relationships between Ford and Chinese automotive firms. A primary point of dispute is Ford's use of licensed battery technology from CATL at its BlueOval Battery Park facility in Marshall, Michigan. Duffy also cited Ford's joint venture with Geely Auto at the Almussafes manufacturing plant in Valencia, Spain, where Geely acquired a 34% stake in July 2026 to assemble up to five vehicle models.

The federal assessment also noted broader commercial connections involving Chinese automaker BYD, as well as Ford's decision to postpone the repatriation of Lincoln model assembly from Chinese factories to the United States until 2030. Duffy stated that American automotive manufacturers are expected to pursue technological self-sufficiency rather than relying on partnerships with foreign competitors.

Ford defends domestic operations

Ford rejected the Department of Transportation's claims, describing the criticism as an inaccurate characterisation of its business model. The automaker stated that the letter contained factual errors regarding its production agreements and dismissed the public release as an attempt to generate media attention. Ford reiterated that it remains the leading automobile assembler by volume in the United States.

Addressing the Michigan battery facility, Ford clarified that its relationship with CATL is structured strictly as a limited technology and services licensing agreement. The company emphasised that foreign entities hold no equity in the Marshall site, and that Ford retains complete ownership, manages daily manufacturing operations, and employs the entire local workforce.

If the secretary had contacted us before releasing the letter to the media, we would have been pleased to provide further details on Ford's commitment to the United States.

Regulatory backdrop and domestic investments

The friction follows broader federal scrutiny of Chinese automotive technology under the Donald Trump administration, including earlier regulatory actions that blocked United States sales of electric vehicles produced by Geely-owned Polestar. Federal officials have maintained pressure on domestic automakers to curtail technological integration with Chinese suppliers across the electric mobility sector.

In its defense, Ford referenced recent domestic manufacturing commitments acknowledged by federal officials. In August 2026, the White House commended the company for a $3 billion manufacturing investment projected to create 1,700 jobs within the United States. Ford argued that this expansion demonstrates its alignment with domestic industrial goals despite federal criticism of its international licensing arrangements.