Ford Motor Co. to Cut Jobs in China as Sales Decline Below Half a Million Units in 2022
Layoffs
May 16, 2023
May 15, 2023
American carmaker Ford Motor Co. is reportedly planning to cut jobs in China as it faces declining sales in the country's biggest car market. Economic Daily News and other local media outlets have reported that the layoffs could affect over 1,300 jobs. This move comes after the company’s sales in China fell below half a million units for the first time in a decade in 2022.
Ford has been facing a decline in its market share in China since 2016, when the company shipped 1.27 million vehicles and had a market share of 4.6 percent. The share dropped to 2.1 percent last year as Chinese consumers increasingly embrace electric vehicles made by the likes of Tesla Inc. and local players such as BYD Co.
According to a Ford spokeswoman, the company is taking necessary actions to build a healthier and more sustainable business in China. She mentioned that the company’s costs are not competitive and it is working internally and with its partners to reduce costs in all areas. The spokeswoman did not specify the exact number of job cuts or the time frame for the layoffs.
Earlier this year, Ford announced that it would eliminate 3,800 jobs across Europe due to rising costs amid the transition to electric vehicles. With approximately 173,000 employees globally, the company has said it will invest $50 billion in EV production by 2026.
Despite the job cuts, Ford has reaffirmed its commitment to China, stating that the country remains a very important market for the company. The spokeswoman said that Ford is committed to developing its business in China and will continue to accelerate its electrification transformation in the country. The company is currently developing new localized EV products and working with its partners to strengthen its EV business, including expanding its distribution.
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