Ford Motor Company plans to shift some production of its luxury brand Lincoln from China to the United States. This move is a response to tariffs imposed by the Trump administration and regulations targeting Chinese software and components in connected vehicles, aimed at expanding domestic production.
Ford CEO Jim Farley stated in a joint interview with U.S. Secretary of Commerce Gina Raimondo on August 12 that the decision was made as soon as the Trump administration's policies were established. He noted, "We knew exactly what they (the Trump administration) wanted, and we understood what it meant for Ford," explaining that relocating Lincoln production is part of a strategy to increase manufacturing in the U.S.
The decision to move production is influenced by the high tariffs on vehicles imported from China. Ford revealed that the tariff rate on its key model, the Lincoln Nautilus, is as high as 52.5%. Additionally, U.S. regulations limiting the use of Chinese automotive parts and technology in connected vehicles are also a significant concern.
These connected vehicle regulations were introduced during the Biden administration, citing national security concerns, and target adversarial nations like China and Russia. Starting with the 2027 model year, connected and autonomous vehicles sold and operated in the U.S. will be prohibited from using software from these countries, with hardware restrictions set to take effect for the 2030 model year. Farley indicated that these two factors were crucial in the decision to relocate Lincoln production.
Ford is not alone in this shift; General Motors (GM) announced in January that it will move production of its small crossover SUV, the Buick Envision, from China to the U.S. starting in 2028. This trend reflects a broader movement within the American automotive industry to transition vehicle production from China to domestic facilities in response to tariffs and connected vehicle regulations.
* This article has been translated by AI.
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