Ford Moves Lincoln Production to US as China Tariffs Bite
Synopsis
The automaker will relocate production of some Lincoln models from China to the US in 2030, with CEO Jim Farley saying the move is necessary to strengthen Ford’s domestic manufacturing base.
Ford Motor will relocate production of some Lincoln vehicles from China to the United States beginning in 2030, a move the automaker says is aimed at strengthening domestic manufacturing and responding to evolving U.S. trade policies.
Ford CEO, Jim Farley said the decision was made after the U.S. administration introduced higher tariffs on Chinese-made vehicles, making continued imports less viable. The company also cited regulatory changes affecting connected vehicle technology as a contributing factor.
Tariffs drive Production Shift
The Lincoln Nautilus, Ford's primary model imported from China is currently subject to a 52.5% U.S. import tariff. Thus, it is significantly increasing the cost of bringing the vehicle into the American market.
Farley said Ford decided to relocate production as soon as the administration's trade policy became clear. He described the move as difficult but necessary to reinforce the company's U.S. manufacturing footprint.
While Ford confirmed that the U.S. built Lincoln models will be sold domestically, it has not yet disclosed which manufacturing plant will produce them.
Regulatory Changes also Influenced the Decision
In addition to tariffs, automakers have faced tighter regulations under the Connected Vehicle Rule which restricts the use of certain Chinese technology and hardware in vehicles sold in the United States.
Ford said these regulations also influenced its decision to move production, although tariffs remained the primary factor.
The company added that, following discussions with the U.S. Commerce Department, it determined that the Lincoln Nautilus no longer required special authorisation to continue being sold in the U.S. market.
Industry Shifts towards Domestic Manufacturing
Ford's announcement follows a similar strategy by General Motors which has said it will begin moving production of the Buick Envision from China to the United States starting in 2028.
The shift reflects a broader trend among automakers seeking to reduce their dependence on Chinese manufacturing as trade restrictions and geopolitical tensions reshape global supply chains.
Meanwhile, U.S. lawmakers are considering additional measures that could further restrict vehicles linked to Chinese ownership from entering the American market.
Lincoln Expands its US Manufacturing Footprint
Ford said the latest decision builds on Lincoln's existing manufacturing operations in the United States.
The company currently assembles the Lincoln Navigator in Louisville, Kentucky and the Lincoln Aviator at its Chicago Assembly Plant. Both models are exported to international markets, including Canada, Mexico and the Middle East.
The planned relocation of additional Lincoln production is expected to further strengthen Ford's domestic manufacturing base while reducing its exposure to future trade and regulatory risks.
Source: Reuters
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