The Shanghai-based Chinese financial news site East Money recently reported that Ford is cutting its headcount in its joint venture Company in Xi’an, China. The total amount of workers being “quietly” laid off is in the thousands. There is no precise report on the actual count, but among the five factories Ford has in Xi’an, the shifts have been reduced from three per day to one. The three large assembly factories in Chongqing also lowered their output to one fifth of their capacity. The Chinese automobile market shrank in 2018, seeing the first decline in sales since 1990. With the increasing pressure from transportation infrastructure and tough emission standards, it is widely expected that China’s automobile market will continue to suffer over the next few years. Ford is not the only automobile manufacturer that is facing market pressure. Nearly all major players are seeing declines. Analysts expect that the Chinese automobile industry will have more challenges in 2019.
Source: East Money, February 28, 2019