Ford is reportedly laying off 1,300 workers in China

Ford Motor Co. plans to eliminate over 1300 employees in China, according to local Chinese media.

In 2022, Ford's wholesale sales in China dipped below 500,000 units for the first time in ten years, extending a downward trend that began in 2016 when the US carmaker shipped 1.27 million vehicles and held a 4.6% market share.

This is due to Chinese consumers' growing preference for electric vehicles produced by companies like Tesla Inc. and domestic manufacturers like BYD Co., that share fell to 2.1% last year.

“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."

As per Bloomberg, the Ford spokesperson didn't provide a timeline or a breakdown of how many jobs would be eliminated.

The Mustang Mach-E is the sole electric vehicle offered by Ford in China.

Meanwhile, earlier this year Ford announced that it would cut 3,800 positions in Europe due to rising costs associated with the switch to electric vehicles. The business, which employs roughly 173,000 people worldwide, has declared that by 2026 it will invest $50 billion in EV production.

“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.", as per Bloomberg