Ford names new CEO, braces for digital era
FORD announced Tuesday (Wednesday in Manila) that Jim Hackett would resign as chief executive and be replaced by auto veteran Jim Farley as the car giant pushes further into digital and electric investment.
The move follows a bumpy period for Ford after some manufacturing stumbles and a major corporate restructuring that has yet to boost profitability.
Hackett, 65, will retire and hand over the job to Farley, 58, on October 1, but stay on as a special advisor through March 2021. Farley came to Ford in 2007 after a long tenure at Toyota and currently serves as chief operating officer.
Hackett, who had no auto industry experience prior to Ford, joined in 2017 after a career at furniture company Steelcase and was known for his skills in turning around struggling organizations. He also had a stint in the athletics department at the University of Michigan.
Hackett has unveiled an $11 billion cost- savings programs that has involved closing plants in Europe and Latin America
He has overseen major shifts at the 117-year-old Detroit firm, including phasing out most sedan models in the US market and launching the Mustang Mach-E, an all-electric sport utility vehicle built on one of the auto industry's most iconic brands.
Both moves drew criticism, with some analysts pointing out that ending sedan-building in the truck-centered US market alienated some customers, and design mavens decrying the Mustang's makeover into a suburban-oriented mainstay.
The company also botched the 2019 rollout of the Explorer SUV due to manufacturing fumbles that the company blamed on an overly-ambitious plan.
Ford's share price has fallen during Hackett's tenure amid doubts over long-term direction as it has lagged rival General Motors. Chairman Bill Ford credited Hackett with "taking on the tough issues and slaying the sacred cows."
Ford, the great- grandson of company founder Henry Ford, said during a briefing with reporters that Hackett's mission at the outset of his appointment included preparing the company for a successor.
Ford characterized Farley as a true car person, noting he enjoys racing vintage cars as a hobby.
Farley said during the briefing that there were no major strategic differences between him and Hackett and that he was "all in" on the outgoing CEO's emphasis on refashioning car design around digital capacities.