US transportation department warns Ford over Chinese partnerships
The US Department of Transportation has sent a letter to Ford CEO Jim Farley expressing concerns about Ford's ties with Chinese firms CATL, Geely, and BYD. The letter cites national security risks and questions the company's reliance on Chinese technology. Ford's stock fell over 4% following the news.
The letter, made public on Tuesday but dispatched the previous week, specifically targets Ford's battery plant in Michigan where CATL technology is used. It also flags Ford's Spanish venture with Geely and ongoing discussions with BYD regarding hybrid components.
Ford's planned relocation of Lincoln Nautilus assembly from China to the US by 2030 was deemed insufficient by the transportation secretary, who highlighted a prolonged dependence on Chinese manufacturing. Following the disclosure, Ford shares dropped over four percent, and the company has yet to issue a public response.
This regulatory pressure could force Ford to reassess its cost structures and technology sourcing, potentially delaying EV production timelines or raising vehicle prices. It may also deter other US automakers from similar Chinese partnerships, reshaping global supply chains. Consumers could face fewer affordable EV options if these ties are severed, while investors may see continued volatility in auto stocks amid geopolitical tensions.