Automaker cites steep tariffs and technology restrictions as Washington pushes companies to strengthen domestic vehicle manufacturing
DETROIT: Ford Motor plans to move production of some Lincoln models from China to the United States beginning in 2030, as tariffs and restrictions on Chinese automotive technology reshape the company’s manufacturing strategy.
Ford CEO Jim Farley said the company made the difficult decision after the US administration clarified its trade policies. He said Ford understood that the measures would significantly affect vehicles imported from China.
The Lincoln Nautilus, Ford’s primary China-made import into the United States, currently faces a 52.5 percent tariff. Ford sold approximately 34,000 Nautilus vehicles in the US last year.
Tariffs Drive Ford’s Manufacturing Shift
Farley said tariffs provided the main reason for relocating production, although Washington’s Connected Vehicle Rule also influenced the decision.
The regulation restricts certain Chinese hardware and technology in vehicles sold in the United States because of national security concerns.
Meanwhile, Ford said discussions with the Commerce Department established that the Lincoln Nautilus no longer required special authorisation to remain on sale. Ford previously said engineers developed its software in the United States before workers installed it in China.
Commerce Secretary Howard Lutnick welcomed Ford’s decision, arguing that domestic manufacturing provides American automakers with a competitive advantage.
US Automakers Reshape China Production Strategies
Ford has not disclosed which US facility will manufacture the relocated Lincoln models. However, Farley said domestically produced vehicles would serve the American market as Ford expands local output.
Furthermore, General Motors plans to transfer production of its Buick Envision from China to the United States beginning in 2028.
Ford already manufactures several Lincoln vehicles domestically. The company produces the Navigator in Louisville, Kentucky, and assembles the Aviator at its Chicago plant before exporting both models to several international markets.
Meanwhile, US lawmakers are considering additional restrictions on vehicles connected to Chinese companies.
Consequently, tariffs, technology regulations and Washington’s industrial policies are increasingly encouraging global automakers to reconsider China-based production intended for American consumers.
