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Ford Laying Off 700 Employees Due to Slow Focus, C-Max Sales

Motor Trend logo Motor Trend 4/24/2015 Kelly Pleskot

Starting June 22, Ford will cut an entire shift at its Michigan Assembly plant as a result of slow sales for small cars, electrics, and hybrids. The layoffs will affect around 675 hourly workers and 25 salaried employees.

"Ford will be working to redeploy affected hourly employees and they will be considered first for southeast Michigan opportunities as they become available," Ford said in a statement. Meanwhile, salaried workers will be transferred to other Ford plants.

2015 Ford C Max Hybrid© Provided by MotorTrend 2015 Ford C Max Hybrid

The Ford Focus, which is made at the Michigan Assembly plant, saw its sales drop 14.5 percent last month compared to the same time a year ago. That's despite the fact that the model is newly refreshed for the 2015 model year, and that the electric version 2015 Ford Focus Electric Starts at $29,995, Slashed by $6,000" target="_blank">is now $6,000 cheaper. Sales of the C-Max Hybrid were also down 22.9 percent from last March.

2015 Ford C Max Hybrid

But Ford isn't the only automaker suffering from slow sales of its small cars. General Motors also recently announced layoffs at two Michigan plants due to the same problem. The Chevrolet Sonic subcompact hatch, for instance, plummeted 51.4 percent in sales last month.

Ford's decision to lay off hundreds of workers comes just days after the automaker announced it is preparing new plants in Mexico. Ford has committed to spending $2.5 billion in new facilities for fuel-efficient engines and automatic transmissions. That extra cash will add 3,800 more workers to the 11,300 people Ford already employs in Mexico.

Source: The Detroit News, Ford

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