'Upset' Ford hits back at US transport secretary; says: Your letter is factually wrong

The US transportation secretary Sean Duffy recently sent a letter to American car giant Ford asking the company to cut ties with CATL and Geely. The letter objects to the joint venture Ford is building with Geely at its plant in Valencia, Spain.

Duffy wrote to Ford CEO Jim Farley on September 8, citing "profound concern". “When a company intentionally chooses to deepen operational dependencies on strategic competitors, it fails to act as the reliable partner the American public and this DOT require,” the letter said. The letter criticizes Ford's decision to continue manufacturing some Lincolns in China until 2030. It takes aim at Ford's technology licensing deal with CATL, under which the automaker is producing lithium iron phosphate (LFP) batteries at a new plant in Michigan.

"DOT remains deeply alarmed by Ford's continued reliance on licensed technology from Chinese battery manufacturer CATL at the operational BlueOval Battery Park facility in Marshall, Michigan," Duffy wrote.Ford has called the Duffy's letter “a wrongheaded attempt to capture headlines“. The company said, "While others continue to import Chinese batteries, Ford is investing to build batteries here in America.

The CATL arrangement is a limited technology-licensing and services agreement, not a joint venture or foreign-owned manufacturing operation." In a statement, Ford pointed out that the White House praised the battery plant in a press release mere days ago.

Here's Ford's statement in response to the letter from transportation secretary Duffy

Secretary Duffy’s letter is a wrongheaded attempt to capture headlines at the expense of a company that has done more for American manufacturing than virtually any other in the nation’s history.Ford is the most American automaker. We produce more vehicles in the U.S., employ more hourly manufacturing workers and export more vehicles from the U.S. than any other automaker. While our crosstown rivals and foreign-based competitors increasingly rely on importing foreign-made vehicles from Japan, Mexico and Korea, Ford is doubling down on America.BlueOval Battery Park Michigan in Marshall is a Ford-owned and Ford-operated facility representing billions of dollars in investment and approximately 1,700 new American jobs.

It is producing batteries in Michigan, with American workers, for Ford vehicles also built in America. While others continue to import Chinese batteries, Ford is investing to build batteries here in America. The CATL arrangement is a limited technology-licensing and services agreement, not a joint venture or foreign-owned manufacturing operation.

Ford owns the plant, controls the operation and employs the workforce.In fact, the White House itself touted Ford’s Marshall project just last week in an official press release:Secretary Duffy’s letter also contains factual errors. Ford has not proposed a joint-venture framework as described in the letter.The letter’s claims regarding Lincoln are equally misguided. Ford is working productively with officials across the administration on trade, emissions standards and bringing manufacturing home, including a commitment to increase Lincoln production for U.S.

customers. Commerce Secretary Howard Lutnick praised that decision just last month, describing it as evidence that manufacturers are “bringing their manufacturing home,” saying Ford is “going to rock us with bringing manufacturing back to America” and crediting the move with bringing “thousands and thousands of jobs back to America.

”Ford believes the United States must compete from a position of strength with American ownership, American jobs, American production and strong national-security safeguards. That is exactly what we are doing across our U.S. manufacturing footprint. Ford supports the Trump administration’s vision for advancing American innovation and manufacturing. Had Secretary Duffy reached out before issuing his letter to the press, we would have been happy to share more details about Ford’s U.S.