Ford to cut costs for China expansion.

Ford Strives to Cut Costs in China to Recover from Sales Slump

Ford China Representative Confirms Cost Reduction Efforts

Ford is working to reduce costs in China as it aims to recover from a long sales slump in the world’s largest auto market. A representative of Ford China confirmed that the company is working internally and with its partners to reduce costs in all areas. “Our costs are not competitive, and we can only win through a lean and agile organization. These actions are necessary for us to build a healthier and more sustainable business in China,” the representative said in a statement to Reuters.

Reports of Job Cuts in China

Last week, local Chinese media reported that Ford planned to cut 1,300 jobs in China, but 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, according to industry data.

Ford to Restructure China Operations

Ford CEO Jim Farley announced in April that the company will restructure its China operations to turn one of its joint ventures into an export hub for low-cost commercial electric and combustion vehicles.

• Ford is working to reduce costs in China to recover from a sales slump
• The company confirmed that it is working internally and with partners to reduce costs in all areas
• Reports suggest that Ford plans to cut 1,300 jobs in China, but the company did not comment on how it would cut costs
• Ford’s sales in China have been sliding since 2016, but its exports from the country nearly doubled in 2022
• The company plans to restructure its China operations to turn one of its joint ventures into an export hub for low-cost commercial electric and combustion vehicles