BEIJING, May 15 (Reuters) – Ford (FN) said Monday it is working to cut costs in China as it tries to recover from a protracted slump in sales 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 Ford China representative told Reuters in a statement.
“We can only win through a lean and agile organization. These actions are necessary 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 has not commented on how it would cut costs. Reuters was unable to independently verify the reported job losses.
Ford’s sales in China have been on the decline since 2016, but exports from the country will nearly double by 2022, industry data showed.
Ford will also restructure its operations in China 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.
Beijing newsroom reporting