Changan Ford’s response to cutting one million units of production capacity The company is currently overcoming difficulties

Changan Ford is overcoming difficulties in response to cutting one million units of production capacity

【PhoneAuto News】Recently, according to PhoneAuto’s understanding, related media reported that Changan Automobile and Changan Ford, a joint venture under Ford China, have cut millions of production capacity due to declining sales. At its peak, Changan Ford’s annual sales once approached one million vehicles, with five vehicle factories located in Chongqing, Harbin, and Hangzhou, and production capacity of up to 1.6 million vehicles. However, Changan Ford’s production capacity has now been sharply reduced to 670,000 vehicles.

Ford Motor

Regarding this news, relevant persons from Changan Ford recently responded to reporters that the company is currently overcoming difficulties and actively transforming. Currently, factories in Chongqing and Hangzhou are producing normally. In addition, it was recently reported that Ford China began to lay off employees, involving more than 1,300 people, and compensating according to N+3. Ford China recently stated that the company is investing resources in core businesses with advantages, bringing more and better products to Chinese and even global consumers through a series of iconic brands and products, and creating more value for stakeholders.

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According to statistics from relevant professional institutions, Changan Ford’s sales in 2022 reached 251,000 vehicles, a year-on-year decrease of 17.61%. In the past five years, Changan Ford’s net profit has been in a loss state for three years, with a total loss of approximately 4.8 billion yuan. Not only that, Changan Ford’s current production capacity is only 670,000 vehicles, but the production capacity utilization rate in 2022 is only 47%, with more than half in idle state, and the production capacity utilization rate in the first quarter of 2023 has dropped to about 33%.

As for the global market, Ford’s car sales in 2022 are expected to be 1.86 million, lower than 1.91 million in 2021. In addition, the overall car sales in the US automotive industry in 2022 fell by 8%, the lowest level in 11 years.

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