Ford CEO warns of Chinese carmakers, Europe “too late”

Ford CEO Jim Farley said at an Automotive News conference yesterday, according to a Reuters report, that the US must “be extremely careful around how the Chinese OEMs come to our country” and that for European countries, “it’s too late”.

The 64-year old, who’s said good things about Chinese cars in the past, including a Xiaomi SU7 which he daily-drove for half a year, said Ford will partner with Chinese companies when the situation is capital-efficient and where Ford lacks expertise. “We’re also going to compete with them directly. They aren’t mutually exclusive,” he said.

US transportation secretary Sean Duffy urged Farley in a letter earlier this month to sever ties with CATL, Geely and BYD, saying the Blue Oval’s dealings with Chinese companies were “troubling” and raised “profound concern”.

Ford CEO warns of Chinese carmakers, Europe “too late”

Ford and Geely announced a joint-venture in July

The letter added that the transportation department was “deeply alarmed” by Ford’s reliance on licensed technology from CATL at its Marshall, Michigan plant, and that CATL is on the Pentagon’s list of companies accused of ties to China’s military.

Duffy also said the decision to move Lincoln Nautilus production from China to the US only by 2030 leaves Ford reliant on Chinese manufacturing for several more years.

Less than 24 hours after the letter, the Republican-controlled house select committee on China posted on X that Ford has by turns warned of the threat Chinese companies pose to the US and yet is partnering with some of them. “This is what Ford says vs. what it does,” the post read.

Ford CEO warns of Chinese carmakers, Europe “too late”

The Ford Bronco Basecamp a.k.a. Bronco New Energy has Chinese underpinnings

Republicans were quick to chime in, with senator Rick Scott praising Duffy for “sounding the alarm about Ford’s risky ties to (Chinese Communist Party) companies” and representative John Moolenaar, the China committee chair, commending Duffy “for calling out Ford’s growing reliance on Chinese companies, including CATL and Geely.” Moolenaar added that “Ford should work with our nation’s allies, not our adversaries.”

Contradictorily, on X the same day, the White House called Ford a “great American company” that had invested in US production, and commerce secretary Howard Lutnick just weeks ago lauded some of the very moves Duffy panned in his letter.

Ford responded in a statement that Duffy’s letter was “a wrongheaded attempt to capture ​headlines”, adding that “while others continue to import Chinese batteries, Ford is investing to build batteries ​here in America” and that “Ford owns the plant, controls the operation and employs the workforce.”