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Ford JV cuts contract jobs as sales fall
Reuters | 2019/3/1

BEIJING -- Ford Motor Co.'s joint venture with China Changan Automobile Group wont renew contracts at some staffing agencies that supply the company with workers, as carmakers struggle to cope with slumping sales in China.

The New York Times   reported that the Ford-Changan joint venture has "quietly begun" dismissing thousands of its 20,000 workers in the world's second-largest economy.

Ford did not comment on how many workers were being supplied by the agencies.

China's light-vehicle sales fell 2.8 percent in 2018, according to China's Association of Automobile Manufacturers, marking the first contraction since the 1990s. Slowing economic growth as well as the fallout of trade frictions with the United States have hurt demand.

Ford suffered an even deeper sales slump of 37 percent last year in China, due to lack of new and significantly redesigned models, especially SUVs and crossovers.

Company executive told Reuters last year it was unlikely that Fords sales will regain momentum in China until later in 2019 when the first new and redesigned vehicles arrive in showrooms in large enough numbers.

Beijing has in recent months pledged various measures to boost private consumption to prop up growth, including subsidies to boost rural sales of some vehicles and purchases of new energy vehicles. January's car sales fell 15.8 percent from a year earlier, however, and CAAM does not expect annual sales growth in 2019.

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