Overview
- The Department of Transportation released a letter that was dated September 3 and made public Tuesday urging CEO Jim Farley to cut ties with Chinese firms after citing large‑scale licensing of CATL battery technology at Ford’s Marshall, Michigan plant.
- Duffy singled out three flashpoints in the letter: the CATL technology‑license used at BlueOval Battery Park, Ford’s partnership with Geely to run the Valencia, Spain plant, and reported talks with BYD on hybrid components.
- Ford responded within hours, calling the letter a “wrongheaded attempt to capture headlines,” saying it owns and operates the Marshall plant, that the CATL deal is a limited technology‑licensing agreement, and that the investment will create U.S. jobs.
- The letter proposed no immediate DOT sanctions and observers note Transportation has limited authority over corporate sourcing, yet the rebuke sharpened congressional scrutiny and helped trigger a near‑term drop in Ford’s share price.
- The dispute highlights a larger policy clash in Washington over China exposure in autos as Congress advances tighter limits on Chinese vehicles and the White House balances praise for U.S. investment with national‑security concerns.