The move underlines how the 52.5% tariff on Chinese-built vehicles is now driving concrete reshoring decisions rather than just squeezing margins on existing import volumes, with Ford following General Motors down the same path on separate Lincoln and Buick nameplates. For Ford specifically, shifting Nautilus production onshore removes a tariff and regulatory overhang tied to Chinese-sourced technology under the Connected Vehicle Rule, though the 2030 timeline means the near-term earnings impact from the existing duty structure persists for several more years. The broader read for the sector is that further tightening under consideration in the Senate, which would bar companies more than 15% Chinese-owned from selling in the US, keeps regulatory risk elevated for automakers with China exposure, Mercedes-Benz among them, and reinforces the incentive to localise production regardless of near-term cost.
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Ford is following General Motors in pulling Lincoln production out of China, a decision Farley says was locked in the moment Washington’s tariff policy became clear.
Summary:
- Ford plans to move production of some Lincoln models from China to the US starting in 2030, CEO Jim Farley told Reuters
- The US currently applies a 52.5% tariff on the Lincoln Nautilus, the main model Ford imports from China
- Farley said tariffs were the primary driver of the decision, with the Connected Vehicle Rule, which bans certain Chinese technology and hardware in US vehicles, also a factor
- Farley said Ford made the call as soon as the administration’s tariff policy was set, in a joint interview with US Commerce Secretary Howard Lutnick
- US-made Lincolns would be sold domestically as part of a broader effort to scale up output, though Ford has not disclosed where they will be produced
- The move follows General Motors, which has already announced plans to shift Buick Envision production from China to the US starting in 2028
- Ford said it learned after discussions with the Commerce Department that the Nautilus no longer needs regulatory authorisation to continue selling in the US, after previously requiring approval due to its China-installed, US-developed software
- Ford sold around 34,000 Nautilus vehicles in the US last year
- A separate Senate Commerce Committee-approved measure would bar companies more than 15% Chinese-owned from selling vehicles in the US, a rule that would affect Mercedes-Benz if implemented
- Lincoln already builds the Navigator in Louisville, Kentucky and the Aviator in Chicago, exporting both to Canada, Mexico and Middle East markets
Ford Motor plans to move production of some Lincoln models from China to the United States starting in 2030, Chief Executive Jim Farley told Reuters on Wednesday, describing the shift as difficult but necessary to strengthen the company’s domestic manufacturing base. The decision centres on the Lincoln Nautilus, the main model Ford currently imports from China and one that faces a steep 52.5% US tariff on gasoline and electric vehicles built there.
Farley said tariffs were the primary factor behind the move, made in a joint interview with US Commerce Secretary Howard Lutnick. “We made this decision as soon as the policy of the administration was set,” Farley said, adding that Ford understood exactly what the tariff policy meant for the company once it became clear. A separate regulatory factor also weighed on the decision: the Connected Vehicle Rule, which restricts the use of certain Chinese technology and hardware in vehicles sold in the US. Farley said both issues contributed, though he pointed to tariffs as the more significant driver. Lutnick, for his part, framed the shift as a competitive advantage for Ford, saying domestic manufacturing gives the company an edge.
The US-built Lincolns would be sold in the domestic market as part of a broader push to scale up American output, Farley said, although Ford has not yet disclosed where the vehicles will be manufactured. The move follows a similar decision from General Motors, which has already said it will shift production of its Buick Envision from China to the US starting in 2028, suggesting tariff and regulatory pressure is prompting comparable reshoring moves across Detroit’s automakers.
Separately, Ford said discussions with the Commerce Department led it to determine the Nautilus no longer requires special authorisation to continue selling in the US. The company had previously said Nautilus software was developed domestically but installed in China, a combination that required government approval under the Connected Vehicle Rule. Automakers denied such authorisation, including EV maker Polestar, face outright bans on selling affected products in the US. Ford sold around 34,000 Nautilus vehicles domestically last year.
The regulatory backdrop for Chinese-linked auto content continues to tighten. A measure approved by the Senate Commerce Committee in July would go further than the existing Connected Vehicle Rule, barring any company more than 15% owned by Chinese entities from selling vehicles in the US, a threshold that would affect Mercedes-Benz if the measure becomes law. Ford said Wednesday’s announcement builds on Lincoln’s existing US manufacturing footprint, which already includes the Navigator, assembled in Louisville, Kentucky, and the Aviator, built at the Chicago Assembly Plant. Both models are currently exported to markets including Canada, Mexico and the Middle East.
This article was written by Eamonn Sheridan at investinglive.com.
