Ford CEO Jim Farley has warned that Chinese automakers pose a growing threat to the U.S. market, calling for caution in their expansion while acknowledging that Europe is already too late to compete. Speaking at an Automotive News conference, Farley said the United States must “be extremely careful” about how Chinese original equipment manufacturers (OEMs) enter the country, despite his earlier praise for Chinese vehicles such as the Xiaomi SU7, which he drove daily for six months.
The automaker’s position stands in stark contrast to recent political pressure. Earlier this month, U.S. Transportation Secretary Sean Duffy sent a letter to Farley urging the firm to cut ties with Chinese suppliers CATL, Geely and BYD, citing national-security concerns.
Duffy pointed out that the company relies on licensed technology from CATL at its Marshall, Michigan battery plant, and he noted that Ford appears on the Pentagon’s list of entities with suspected military connections. He also criticized the delayed relocation of Lincoln Nautilus production from China to the United States, a move that is not scheduled for completion until 2030.
Read Also: iCaur V27 gets longer range edition
Republican lawmakers quickly amplified the criticism. Senator Rick Scott described Duffy’s letter as a necessary alarm about Ford’s partnerships with Chinese firms, while Representative John Moolenaar, chair of the House China committee, accused the automaker of hypocrisy for warning about Chinese competition while still collaborating with those suppliers. The committee posted on X that Ford’s actions contradict its public warnings, stating, “This is what Ford says vs. what it does.”
The backlash emerged less than 24 hours after the letter was sent. In contrast, the White House portrayed Ford as a great American company investing in domestic production, and Commerce Secretary Howard Lutnick recently praised several of the steps that Duffy had criticized.
Ford defended its approach in a statement, calling Duffy’s letter a wrong-headed attempt to capture headlines. The firm emphasized its investments in U.S. battery production, noting that it owns the plant, controls the operation, and employs the local workforce in Michigan. Nevertheless, Farley’s remarks indicate that the automaker remains wary of deeper Chinese involvement, even as it deals with political and strategic pressures.
