In difficult market, Chinese automaker cuts jobs, switchs to green cars

by SpeedLux
Qoros

Chinese automaker Qoros, established 10 years ago, has cut jobs and is moving its focus to faster-growth electric vehicles in reaction to increased amount of rivals in the biggest car market.

In formerly unreported cuts, Qoros, which is backed by almost $1 billion each from Chery Auto and Kenon Holdings, has shed over a fifth of its workforce – down to 1,910 from 2,450 two years earlier, a spokesperson stated.

Four previous Qoros staff members said the cuts included the current loss of around 80 engineering specialists and employees, mainly more costly non-Chinese hires and senior staff.

Qoros has won quality kudos for its petrol vehicles, including its Qoros 5 sport-utility vehicle introduced in 2016, however it now highlights some of the threats that automobile start-ups deal with as competitors magnifies and a slowing Chinese economy weighs on vehicle sales.

“You have the tendency to consume your very own Kool-Aid and believe whatever forecast you had. Then you grow and grow and grow, and before you understand it, you have a monster,” Dan Cohen, vice chairman, stated. “I see this happening now in some other (start-up) companies.

There’s harder competition all around.

Established Chinese car manufacturers such as Geely Auto Holdings and Great Wall Motor are catching up with worldwide competitors in quality; those worldwide car manufacturers are increasingly rivaling with less expensive models; and lots of local electric automobile start-ups crowd a ‘new energy’ market strongly promoted by the government.

Shanghai-based Qoros has suffered loss of around 9.5 billion yuan ($1.4 billion) since it was established, and has missed out on sales targets by some margin.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

SpeedLux

SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.

Subscribe

©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More