Ford says it will reduce costs to boost China business

 Ford said on Monday it was working to reduce costs in China as it strives to recover from a long sales slump in the world’s largest auto market.

“Our costs are not competitive, and we are working internally and with our partners to reduce costs in all areas,” a representative of Ford China told Reuters in a statement.

“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,” the company added.

Local Chinese media reported last week, citing unnamed sources, that the company planned to cut 1,300 jobs in China.

The company did not comment on how it would cut costs. Reuters was not able to independently verify the reported job cuts.

Ford’s sales in China have been sliding since 2016 but its exports from the country nearly doubled in 2022, industry data showed.

Ford will also restructure its China operations to turn one of its joint ventures into an export hub for low-cost commercial electric and combustion vehicles, chief executive Jim Farley said in April.

Source : Reuters

GLOBAL BUSINESS AND FINANCE MAGAZINE

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