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Ford’s Farley Pitches China-Style JV Entry for Chinese Carmakers in U.S. Talks With Trump Officials

For now, the idea remains undecided inside the administration.

Overview

  • Jim Farley discussed a potential roadmap at January’s Detroit Auto Show with USTR Jamieson Greer, Transportation Secretary Sean Duffy and EPA Administrator Lee Zeldin, according to multiple reports citing Bloomberg sources.
  • The framework would require Chinese brands to build vehicles in the U.S. through joint ventures where American partners hold controlling stakes and share profits and technology.
  • Trump recently signaled openness to Chinese automakers that build U.S. plants and hire American workers, and some officials view the JV concept as a possible topic for his planned April meeting with Xi Jinping.
  • General Motors told the administration it opposes allowing Chinese entry, while Ford says it has stressed guarding the U.S. market from subsidized imports and raised privacy and national security concerns.
  • Ford has recently pursued talks with BYD on batteries, explored manufacturing with Geely in Europe, and expanded a CATL licensing deal, while both Ford and Xiaomi denied a report of a U.S. JV.