The US Department of Transportation sent a letter to Ford Motor Company's chief executive, expressing deep alarm over the automaker's reliance on Chinese battery maker CATL.

Administration's concerns over Ford's China links

The agency also criticized Ford's joint venture with Chinese automaker Geely in Spain, stating it helps strategic adversaries secure a vital foothold in Western Europe. The US Department of Transportation flagged two distinct areas of concern regarding Ford's relationships with Chinese firms. The first centres on Ford's dependence on CATL, one of the world's largest electric vehicle battery manufacturers, for its battery supply chain. The second involves the joint venture between Ford and Geely, which the administration warned could extend Chinese strategic influence into Western Europe through operations in Spain.

Key concerns raised by the Trump administration

The administration's criticism reflects broader US policy concerns about Chinese companies gaining influence in critical technology supply chains and strategic Western markets. Ford's ties with CATL and Geely have drawn scrutiny as Washington intensifies its focus on reducing American corporate dependence on Chinese partners in the electric vehicle sector.

Ford Motor Company reported a significant contraction in its U.S. vehicle sales for August, with total deliveries falling 10.3% year-on-year to 170,681 units. The decline was driven by a sharp pullback in electric vehicle (EV) demand and a modest dip in its core truck business.

Sales Performance

The automaker’s total U.S. volume for the month stood at 170,681 vehicles. This figure represents a notable decrease from the prior year period, indicating softening demand across key segments.

Segment Breakdown

Ford’s flagship F-Series trucks, a critical revenue driver, saw a marginal decline of 1.2%, with sales settling at 67,504 units. While this segment remains robust, the slight erosion suggests competitive pressure or inventory adjustments.

The most severe impact was observed in the electric vehicle category. EV sales plummeted 79.4% to just 2,197 units. This drastic reduction highlights the ongoing challenges Ford faces in scaling EV adoption amidst shifting consumer preferences and market dynamics.

What the Numbers Show

The divergence between the relatively stable F-Series performance (-1.2%) and the collapse in EV sales (-79.4%) underscores a structural shift in the company’s short-term delivery mix. With EVs constituting a negligible fraction of total August volume (approximately 1.3%), the broader 10.3% decline in total sales is primarily attributable to other internal combustion engine models not explicitly detailed in the headline figures, suggesting a broad-based slowdown beyond just the EV transition.