Ford CEO says Duffy’s letter reflected ‘basic misunderstandings’: report

Ford Motor Co. CEO Jim Farley is pushing back on Transportation Secretary Sean Duffy’s accusations that the automaker is becoming too reliant on China, calling them “basic misunderstandings” that could have been cleared up with “a simple five-minute call.”

In an interview Wednesday with The Wall Street Journal, Farley rejected allegations in a letter from Duffy accusing Ford of “actively intertwining its future with Chinese state-backed enterprises.”

“These are basic misunderstandings, mistruths, whatever words you want to use,” Farley told the outlet.

“We’re not enabling the Chinese to come here,” Farley added. “Actually, you could argue the opposite is the case.”

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Farley also denied Duffy’s claim that Ford had proposed a “framework” that would make it easier for Chinese automakers to establish joint ventures in the U.S., according to The Wall Street Journal.

“N-O, period,” Farley said. “That’s flatly wrong. Ford does not propose any framework described in the letter. We are America’s car company.” 

The letter, made public Tuesday, urged Ford to reduce its reliance on Chinese companies, prioritize U.S. manufacturing and allied supply chains, and “promote the self-reliance and integrity of the domestic automotive industry.” 

Duffy also pointed to Ford’s battery plant in Marshall, Michigan, which licenses technology from Chinese battery giant CATL.

Ford sharply disputed Duffy’s accusations, calling the letter “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.”

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The automaker said its BlueOval Battery Park Michigan facility is owned and operated by Ford, represents billions of dollars in investment and is expected to create about 1,700 American jobs. 

The company said its agreement with CATL is “a limited technology-licensing and services agreement, not a joint venture or foreign-owned manufacturing operation.”

While Farley has warned that Chinese automakers pose a threat to the U.S. auto industry, he said Ford still has to work with competitors in some areas to remain competitive, according to The Wall Street Journal.

“I sure would love the Secretary to come to Marshall, Michigan, and to Louisville like others in the administration to see our breakthrough technology innovated here in the U.S.,” Farley told the outlet.

Farley also said he was surprised Duffy aired his concerns publicly.

“We have great relationships with them that are informal where we can call each other, in either direction,” Farley said. “And we’ve never been surprised like this.”

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On Wednesday, the White House’s Rapid Response 47 account appeared to defend the automaker, writing on X that Ford “is a GREAT American company” that has “done a tremendous job on increasing investments domestically and shoring production back to the U.S.”

FOX Business reached out to the Department of Transportation for comment.

FOX Business’ Brittany Miller contributed to this report.