Ford Ford China has recently been exposed to layoffs, and its joint venture, Changan Ford, has also been reported to be reduced by millions of production capacity.Relevant sources in Changan Ford responded to the media on Monday (May 22) that the company was overcome difficulties and actively transformed.
According to the Shanghai Securities Journal, there were previous media reports that Changan Ford, a joint venture of Ford China, cut off millions of production capacity due to sales decline.It is understood that Changan Ford has five vehicle factories in Chongqing, Harbin and Hangzhou, respectively, with a total production capacity of 1.6 million units, and the current production capacity has been reduced to 670,000 units.
Relevant persons in Changan Ford did not give a clear response to the reduction of production capacity. They only said that the company was overcome difficulties and actively transformed, and said that the production of factories such as Chongqing and Hangzhou is normal.
In addition, it is reported recently that Ford China has begun to lay off layoffs, involving more than 1,300 people, and compensation according to N+3.Ford China responded recently that enterprises are investing resources into core business with advantages. Through a series of iconic brands and products, they also use the comprehensive ability of Chinese partners to bring more and more consumers in China and even global consumers worldwide.Good products create more value for interests.
Reporting that as Changan Automobile's most important joint venture car company, Changan Ford has contributed more than 20%for a long time since Changan Ford Mazda's peeling from Changan Ford Mazda, accounting for nearly 15%of Ford's global sales of nearly 15%; During the peak, the sales in 2016 reached 950,000, accounting for 30.81%and 14.19%of the sales of Changan and Ford, respectively.
In 2016, Ford's sales in China reached its peak, which was 1.27 million, and exceeded the sales of 1.21 million vehicles in China in the same year.However, since 2017, Ford's performance in China has been unsatisfactory due to multiple factors such as vehicle electricization and intensified competition.
In 2022, Changan Ford sold 251,000 units throughout the year, a year -on -year decrease of 17.61 %, only 27 % during the peak of 2016.Entering 2023, Changan Ford's sales were still unsatisfactory. The company's sales in the first April were 58,800 units, a year -on -year decrease of 18.67 %.With the decline in sales, the decline in revenue and performance loss. In 2022, Ford lost a total of US $ 572 million (about 769 million yuan) in China in China.
In addition, there are news that Ford China has begun to lay off layoffs with a layoff of the layoffs as high as 1,300, and the personnel will be compensated in accordance with N+3.The layoffs are one of the main means of responding to Ford's "streamlined and concentration".Ford China responded: "The company is creating a more streamlined and flexible organizational structure, investing resources into a core business with advantages, and striving to achieve the business goal of China."
For the development of the future in China in ChinaStrategy, Ford China said: "For Ford, China is a vital market, and we have unswervingly promoted the promise of sustainable development in China.The production capacity plan exceeds 2 million vehicles, and electric vehicle sales accounted for 50%in 2030.
