To improve the competitiveness of its products in China, Ford announced a comprehensive reform, including layoffs

Ford announced layoffs as part of a comprehensive reform to enhance its product competitiveness in China

【PhoneAuto News】Ford has announced a series of comprehensive reforms to help improve its competitiveness in China.

Like many traditional automakers, Ford has been striving for higher profitability as it invests heavily in new markets and new areas, especially in the field of electric vehicles. This has led Ford to take active cost-cutting measures to improve the operational efficiency and profitability of key sectors. Now, Ford has announced another cost-cutting measure to make its products in China more competitive.

As Reuters initially reported, Ford’s message is clear. “Our costs are not competitive,” said a representative of Ford China. “…We are working internally and with our partners to reduce costs in all areas.”

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While details of Ford’s financial plan have not been disclosed, some key details have been made public. According to reports, Ford will mainly cut 1,300 jobs in China, following a similar approach in Europe, as the automaker consolidates its engineering and technology in the United States while maintaining manufacturing centers elsewhere. Other changes include a focus on exporting more affordable electric vehicle models from China, a mainstream measure in the automotive industry over the past 20 years.

Previously, Ford responded to news that “Ford China will cut more than 1,300 jobs.” “China is a vital market for Ford and our commitment to sustainable development in China remains unchanged,” Ford China said. At the same time, Ford said the company is building a leaner, more agile organizational structure and investing resources in core businesses with advantages to achieve its goals in China.

The data shows that Ford’s annual sales in the Chinese market in 2022 were 496,000 vehicles, a year-on-year decrease of 33.5%, with a market share of 2.1%, a decrease of 0.3% from the previous year, and a loss of 572 million US dollars in China.

According to Ford’s first quarter financial report for 2023, the electric vehicle and digital business division of Ford lost 700 million US dollars (approximately RMB 4.8 billion) in a single quarter. At the same time, Ford’s electric vehicles only contributed about 700 million US dollars in revenue, a significant decrease compared to the 1.6 billion US dollars (approximately RMB 11.06 billion) in the fourth quarter of 2022.

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