By David Shepardson
WASHINGTON, Sept 9 (Reuters) – Republicans in Congress on Wednesday joined criticism of Ford Motor Co over its business ties to Chinese firms after Transportation Secretary Sean Duffy sharply criticized the No. 2 U.S. automaker.
Duffy in a letter to CEO Jim Farley sent on Tuesday urged Ford to cut ties with major Chinese companies, saying that the automaker’s dealings with Chinese battery maker CATL and automakers Geely and BYD raised “profound concern.”
Republican Senator Rick Scott on Wednesday praised Duffy for “sounding the alarm about Ford’s risky ties to (Chinese Communist Party) companies.” The House Select Committee on China posted on X comments from the company and media reports about Ford’s business dealings with Chinese firms under the title: “This is what Ford says vs. what it does.”
But Ford got a vote of confidence from the White House, which posted on X: “Ford is a GREAT American company and has done a tremendous job on increasing investments domestically and shoring production back to the U.S.”
Duffy said the transportation department was “deeply alarmed” by Ford’s reliance on licensed technology from CATL at its plant in Marshall, Michigan, and noted that CATL is on the Pentagon’s list of companies accused of ties to China’s military.
He also criticized Ford’s decision not to move production of the Lincoln Nautilus from China to the United States until 2030, leaving the company reliant on Chinese manufacturing for several more years.
Republican Representative John Moolenaar, the China committee chair, praised Duffy “for calling out Ford’s growing reliance on Chinese companies, including CATL and Geely.” Moolenaar added: “Ford should work with our nation’s allies, not our adversaries.”
Ford on Tuesday said Duffy’s letter was a “wrongheaded attempt to capture headlines.” The company added that “while others continue to import Chinese batteries, Ford is investing to build batteries here in America” and added that “Ford owns the plant, controls the operation and employs the workforce.”
President Donald Trump is set to meet with Chinese President Xi Jinping later this month. Duffy’s comments come as Congress is pushing to tighten a ban on Chinese vehicles in the United States.
Ford shares closed down 4% in midday trading to $13.45. Major automakers last week urged Congress to pass the ban before the end of the year.
The Chinese embassy in Washington responded to Duffy’s letter saying, “Normal business cooperation between Chinese and American enterprises should not be politicized. We urge the U.S. side to respect the laws of the market economy and the principle of fair competition.”
(Reporting by David Shepardson, Editing by Franklin Paul and Andrea Ricci)
