Ford Eyeing Cost Reduction To Boost Business In China

Ford Motor Co F on Monday said that it is working on cost reduction in a bid to build a sustainable business in China.

What Happened: Ford is aware that its costs need to be adjusted, the company said in a statement to Benzinga on Monday.

“We are aware that our costs are not competitive, and we are working internally and with our partners to reduce costs in all areas,” Ford said.

According to the statement, China remains a very important market and the company will accelerate its EV transformation in the country. “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.”

Also Read: Elon Musk Praises Ford’s EV Strategy Despite Woeful Margins: ‘F-150 Lightning … Has High Demand’

The automaker has announced a strategic partnership with Jiangling Motors Corporation Limited, a prominent Chinese automaker, to broaden its product distribution in Asia, the Middle East, and North America.

Why It Matters: Earlier, it was reported that Ford is eyeing 1,300 job cuts in China due to sales declines. However, Ford said, “We do not recognize the job cut figure reported by media.”

The automaker’s market share in China has skidded from 4.6% in 2016 to 2.1% in 2022. Its sales in the country comprise mainly of its ICE vehicles.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read More: Stellantis Puts $3.7B Canada Battery Plant On Ice, Jeopardizing Jobs Of Thousands

Photo: Ford