Ford's China JV ends some job contracts

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Changan Ford, Ford Motor Co's joint venture in China chose not to renew some recently ended service contracts with its employees in Chongqing, southwest China, where the joint venture located, according to Changan Ford.

The New York Times reported on Wednesday that the joint venture has "quietly begun" dismissing thousands of its 20,000 workers due to weak auto sales in China. The report did not identify its source of the information on the scale of the job cuts.

Changan Ford told CGTN that they chose not to renew some recently ended service contracts in order to improve organizational efficiency. Changan Ford didn't release the number of how many employees will be influenced.

The job cuts are limited to Changan Ford, Ford's local joint venture company formed in partnership with Changan Automobile Group.

Ford suffered a sales drop of 36.9 percent last year in China due to lack of new and significantly redesigned models, prompting a first-ever auto industry slowdown in China since the 1990s and trade frictions with the US.

In order to reverse the slump, Ford will launch over ten new Ford and Lincoln models in China to offer the consumers a more diversified choice, according to the company.

(with input from Reuters)