Trump administration slams Ford, alleges ties to China

NEW YORK —

The Trump administration on Tuesday expressed “profound concern” to carmaker Ford about its alleged ties to Chinese technology and manufacturing.

In a letter to Ford CEO Jim Farley, Transportation Secretary Sean Duffy cited Ford’s links to Chinese companies such as battery manufacturer CATL and concerns over the Detroit Auto Show and what it described as Ford’s effort “to facilitate Chinese joint ventures on United States soil.”

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Ford, which called itself “the most American automaker,” quickly responded, accusing Duffy’s letter of containing “factual errors.”

“Secretary Duffy’s letter is 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,” Ford said in the statement Tuesday.

The exchange reflects the Trump administration’s growing pressure to American makers to produce in the United States through auto tariffs, including ones just waged against Canada’s auto industry. At the same time, experts told CNN that Chinese car companies – which already make more vehicles than anyone else on Earth – could be in U.S. showrooms in the next five to 10 years.

Trump had previously welcomed Chinese automakers to manufacture in the U.S., saying “let China come in,” in January at the Detroit Economic Club. Some lawmakers and the U.S. auto industry argued that shouldn’t happen.

In Duffy’s letter to Ford’s CEO, he said “the Company’s recent strategic decisions paint a troubling picture of a foundational American brand actively intertwining its future with Chinese state-backed enterprises.”

He specifically called out “Ford’s continued reliance on licensed technology from Chinese battery manufacturer CATL at the operational BlueOval Battery Park facility in Marshall, Michigan.”

Ford, in its response, said the Michigan facility created 1,700 jobs to produce Michigan-made batteries.

“The CATL arrangement is a limited technology-licensing and services agreement, not a joint venture or foreign-owned manufacturing operation. Ford owns the plant, controls the operation and employs the workforce,” Ford said.

Duffy also raised concern over Farley proposing a framework at the Detroit Auto Show “to facilitate Chinese joint ventures on United States soil.” Ford denied this in its statement, saying the company did not propose a joint-venture framework as Duffy described.