Michigan Senator Gary Peters has voiced concerns regarding Ford's collaboration with a Chinese battery manufacturer, as well as the potential influence of Tesla CEO Elon Musk on the incoming Trump administration. The U.S. Defense Department recently flagged CATL, the world’s largest electric vehicle battery maker, for its alleged ties to the Chinese military. Despite this, Ford plans to use CATL's technology at its Marshall plant, where it will produce low-cost lithium-ion batteries. Additionally, Peters is wary of any preferential treatment Tesla might receive due to Musk's close relationship with President-elect Trump. He also expressed concern over possible tariffs and changes in tax benefits that could affect auto consumers.

Ford's Collaboration with Chinese Battery Manufacturer Under Scrutiny

Senator Gary Peters is closely monitoring Ford's decision to lease technology from CATL, a Chinese company recently blacklisted by the Pentagon for its alleged connections to the Chinese military. While Ford assures complete control over its operations and safety measures, Peters emphasizes the need for thorough due diligence when engaging with Chinese entities. Despite Ford's significant investment and job creation, concerns remain about the implications of this partnership.

The U.S. Defense Department has raised alarms about CATL's alleged involvement with the Chinese military, although CATL denies these claims. Ford plans to utilize CATL's technology to manufacture cost-effective lithium-ion batteries at its Marshall facility. This move involves an investment exceeding $2 billion and will create around 1,500 jobs. However, Peters stresses the importance of ensuring operational security and maintaining rigorous oversight to mitigate potential risks associated with Chinese involvement in critical infrastructure.

Tesla's Influence and Potential Policy Shifts in the Auto Industry

Peters also highlighted concerns about Tesla's influence within the Trump administration, particularly given Elon Musk's substantial financial support for Trump's campaign. There are worries that this relationship might lead to favoritism towards Tesla, potentially overshadowing Detroit automakers. Peters hopes that traditional American car manufacturers can maintain their influence with the new administration.

Elon Musk's contributions to Trump's campaign have sparked discussions about his sway over policy decisions. Musk co-leads an initiative called the Department of Government Efficiency (DOGE), which aims to streamline government operations. With plans to expand staffing rapidly, DOGE operates out of SpaceX offices. Moreover, Peters is apprehensive about proposed tariffs and alterations in tax incentives for electric vehicle buyers. These changes could increase automobile prices during a time when many families are already facing financial strain. He advocates for policies that balance innovation with affordability to support both the industry and consumers.