HONG KONG: Ford Motor Co. plans to cut jobs in China, potentially by more than 1,300, as its sales decline in the world’s biggest car market, local media including Economic Daily News reported.
Ford’s wholesales in China fell below half a million units for the first time in a decade in 2022, continuing a slide since 2016, when the US automaker shipped 1.27 million vehicles and had a market share of 4.6%.
That share dropped to 2.1% last year, as Chinese consumers increasingly embrace electric vehicles made by the likes of Tesla Inc. and local players such as BYD Co.
“Our costs are not competitive, and we are working internally and with our partners to reduce costs in all areas,” a Ford spokesman wrote in an email response to Bloomberg News.
“We can only win through a lean and agile organisation. These actions are necessary for us to build a healthier and more sustainable business in China.”
She didn’t specify how many jobs would be cut or provide a time frame.
Ford said earlier this year it would eliminate 3,800 jobs across Europe due to rising costs amid the transition to EVs.
The company, which has about 173,000 employees globally, has said it will invest US$50 billion in EV production by 2026.
“China remains a very important market and Ford is committed to developing our business here,” the spokesman said.
“We will continue to accelerate our electrification transformation in China. Our new localised EV products are under development now. We are also working with our partners to strengthen our EV business, including expanding the distribution.”
