- U.S. Transportation Secretary Sean Duffy told Ford CEO Jim Farley in a letter that the automaker's business relationships with Chinese battery maker CATL and Chinese automakers Geely and BYD raise "profound concern."
- The letter specifically flagged Ford's licensed CATL battery technology at its Marshall, Michigan plant, its joint venture with Geely in Spain, and its decision not to move Lincoln Nautilus production out of China until 2030.
- Ford called Duffy's letter "a wrongheaded attempt to capture headlines," noting it owns the Marshall plant, controls its operations, and employs the workforce there, unlike companies that simply import Chinese-made batteries.
- Political risk around CATL is elevated because the battery maker appears on a Pentagon list of companies with alleged Chinese military ties, a point the Trump administration raised against Ford's partnership.
- Ford raised its full-year adjusted EBIT guidance to $10 billion-$11 billion after Q2 results beat expectations, with record Bronco sales and a stronger product mix supporting the improvement.
- Ford's Model e losses narrowed for three consecutive quarters, and its existing U.S. manufacturing footprint gives it a faster path to adapt if Washington tightens restrictions on Chinese automotive technology.
Quotes
“profound concern”
“a wrongheaded attempt to capture headlines”