Ford CEO rejects Transportation Secretary's claims about China reliance

Ford Motor Co. chief executive Jim Farley said Transportation Secretary Sean Duffy's criticism of the company's ties to China stems from misunderstandings that could have been clarified with a brief phone call. In an interview with The Wall Street Journal, Farley rejected a letter from Duffy that alleged Ford was "actively intertwining its future with Chinese state-backed enterprises" and claimed the automaker had suggested a framework to simplify Chinese joint ventures in the United States. > "These are basic misunderstandings, mistruths, whatever words you want to use," Farley said. > "We’re not enabling the Chinese to come here. Actually, you could argue the opposite is the case." He added that Ford does not propose any such framework and emphasized that the company is "America’s car company."

The secretary's letter, released publicly on Tuesday, urged Ford to lessen its reliance on Chinese firms, focus on U.S. manufacturing and allied supply chains, and support domestic automotive self-reliance. Duffy cited Ford's battery plant in Marshall, Michigan, which uses technology licensed from Chinese battery maker CATL. Ford responded that the BlueOval Battery Park Michigan facility is wholly owned and operated by Ford, represents billions of dollars in investment and is expected to create about 1,700 U.S. jobs. The agreement with CATL, the company said, is a limited technology-licensing and services arrangement, not a joint venture or foreign-owned operation.

Farley, while acknowledging competitive pressure from Chinese automakers, said cooperation in certain areas is necessary to stay competitive. He invited the secretary to visit the Marshall plant and other sites to see Ford's domestic innovations. Farley also expressed surprise that Duffy had aired his concerns publicly, noting that the two have informal communication channels. A White House rapid-response account later defended Ford, describing it as a "great American company" that has increased domestic investment and reshored production.