“Our costs are not competitive, and we are working internally and with our partners to reduce costs in all areas,” a Ford spokeswoman wrote in an email response to Bloomberg News. “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.”
She didn’t specify how many jobs would be cut or provide a time frame.
Ford is restructuring its China operations to turn one of its joint ventures into an export hub for low-cost commercial electric and combustion vehicles, CEO Jim Farley said in April. The company also plans to operate leaner and more efficiently in the country with a focus on more profitable operations, such as Lincoln and commercial vehicles.
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 $50 billion in EV production by 2026.
“China remains a very important market and Ford is committed to developing our business here,” the spokeswoman said. “We will continue to accelerate our electrification transformation in China. Our new localized EV products are under development now. We are also working with our partners to strengthen our EV business, including expanding the distribution.”
