In a surprising move, Ford has ousted CEO Mark Fields, 56, following months of speculation and 3 years of decreasing stock costs.
Fields is replaced by Jim Hackett, the former board member who took control of a new mobility system developed by the company to broaden into new locations of transport. As the head of Ford Smart Mobility, he was tasked with assisting Ford meet new mobility needs of the future such as traffic congestion and technology changing how individuals get around. Hackett will report to company Executive Chairman Bill Ford.
Ford shares dropped 40 percent since Fields took over the leading spot from previous CEO Alan Mulally and upstart Tesla passed Ford in market price. Ford has also seen profits and market share decrease, a slide that will be difficult to reverse as the United States vehicle market cools down, triggering Ford to cut 1,400 salaried jobs. Part of the profit drain has been pricey recalls, prompting concerns about Ford’s quality at the recent yearly shareholder meeting.
Ford states Fields has chosen to retire after a 28-year career with the company. Fields has been with Ford for most of his profession and strove to show Mulally and the board that he was the man for the leading task. However the board has questioned his techniques, given the market’s lack of reaction to initiatives to branch off to welcome more aspects of mobility consisting of right sharing, connectivity, and autonomous vehicles. Prior to the recent yearly investor meeting, the board assembled for an extra day for more explanation from Fields about his vision and plan for the future.
Gone with Fields is the head of communications, Ray Day, likewise a longtime staff member and the man delegated with drafting Ford’s message. He is replaced by Mark Truby, a former Detroit News reporter and an individual long viewed as a possible successor to Day.
Jim Hackett was CEO of furniture company Steelcase up until 2014, and he has a strong relationship with Bill Ford. At age 62, he is considered as an interim leader.
Possible longer-term replacements consist of Joe Hinrichs, president of The Americas, who becomes executive vice president for worldwide operations. Hinrichs has been well respected and successful in his numerous posts worldwide for Ford.
Also Jim Farley, who is head of Ford of Europe, broadens his obligations to oversee worldwide sales and marketing in addition to Lincoln. Farley has done a some of his finest work in the marketing field.
