U.S. authorities criticized Ford for its business dealings with China. Its stock fell 4%.

U.S. Transportation Secretary Sean Duffy sharply criticized Ford's business dealings with Chinese companies. In an open letter addressed to the automaker’s CEO, Jim Farley, the transportation minister called dependence on “technologies from foreign adversaries” unacceptable for America. Ford’s stock plummeted 4.2% following the publication of the letter. In premarket trading on September 9, it rose by about 0.4%.

The administration’s dissatisfaction stemmed from several Ford projects at once: a licensing agreement with the Chinese company CATL to manufacture batteries in Michigan, a joint venture with Geely in Europe, and the import of Lincoln vehicles assembled in China for the U.S. market. The letter states that Ford has promised to bring this production line back to the U.S. starting in 2030, but the intervening period represents “a multi-year window of dependence on Chinese manufacturing, depriving skilled American workers of vital jobs.”

“Although the Department of Transportation acknowledges the intense competitive pressure of the global market, Ford’s recent strategic decisions paint an alarming picture of how a quintessentially American brand is actively tying its future to state-backed Chinese enterprises,” Duffy wrote.

The letter also states that at the Detroit Auto Show, the head of Ford proposed to officials the idea of establishing joint ventures with Chinese automakers in the United States.

Earlier, The Wall Street Journal reported, citing sources, that the auto giant is in talks with China's BYD regarding the supply of batteries for future hybrid vehicles.

The automaker called Duffy's letter "a misguided attempt to make headlines." Company representatives pointed out that Ford leads the industry in terms of vehicle production and exports from the U.S., as well as in the number of employees in the country.

Ford noted that the decision to move Lincoln production from China in August was highly praised by Commerce Secretary Howard Latnik, that the Michigan plant is wholly owned by the company, and that the partnership with CATL is limited solely to the purchase of a technology license. "Just last week, the White House itself promoted this project in an official press release," Ford said in a statement.

The company denied reports that it had proposed a concept for joint ventures with China to U.S. authorities in Detroit, as well as rumors of negotiations to expand its partnership with Geely into the U.S. market.

Ford emphasized that it shares the authorities’ concerns and supports a possible ban on the sale of vehicles from China in the U.S. to protect the domestic market. However, it will not be possible to completely isolate themselves from Chinese competitors. To survive in the global market, they have to engage in targeted cooperation with Chinese players to gain access to their cutting-edge technologies, the American auto giant explains.

Since the beginning of the year, Ford's stock has risen by only 6.7%, while the S&P 500 broad-market index has gained nearly twice as much.

At the same time, over the past three months, the consensus rating for the automaker’s stock has improved from a neutral “Hold” to “Overweight,” which is equivalent to a buy recommendation, according to MarketWatch data. The number of “bullish” ratings on the company has increased from six to eight, while the number of neutral ratings has decreased from 16 to 13. The proportion of skeptics, however, has remained unchanged: two analysts recommend selling Ford shares.

The average target price is $15.9, which implies upside potential of approximately 13% over the next 12 months.

This article was AI-translated and verified by a human editor