Ford Shake-Up: A Look at Who's In and Who's Out

Marco Green
June 4, 2017

Patrick Moorhead, president and principal analyst at Moor Insights & Strategy, says that Ford's change in leadership could be a sign of how tech-focused companies like Tesla Inc. and even Google Inc. parent Alphabet Inc. are disrupting the auto industry. While the entire USA auto market is slowing down, Fields has been under pressure to increase Ford's profit margins, which trail competitors like General Motors.

As Post&Parcel reported this morning, speculation about Hackett's elevation to CEO appeared in various media outlets on Friday.

Hackett's appointment was just the tipping point of a major management shakeup at Ford.

Hackett will work together with Bill Ford to modernize the company's business model, transforming it to meet tomorrow's challenges, and sharpen operational execution. He started past year as the head of Ford's smart mobility team.

"We are fortunate to have three dynamic and talented leaders in Jim Farley, Joe Hinrichs and Marcy Klevorn taking on greater responsibility", Bill Ford said.

While Ford is expecting a $9 billion pre-tax profit this year, market share is down and the company's share price is down 40 percent since Fields took over. Previously, Hackett was chief executive of Steelcase, the office furniture company.

Mr Hackett, 62, revived the fortunes of office furniture maker Steelcase as CEO from 1994 to 2014 and his promotion indicates Ford is looking to seize on that expertise as consumer demands change. Farley will also oversee the Lincoln division and global marketing, sales, and service.

Mark Truby is appointed vice president, communications, and elected a company officer.

Electric vehicle maker Tesla, with a market value of around $51.1bn, has passed the valuation of 114-year-old Ford, which is worth around $43.4bn.

Ford sales fell seven per cent in the United States and 11 per cent in Europe in April compared to the same period a year ago. Additionally, there have been concerns Ford is lagging in the tech race for connected cars and self-driving technology.

Hackett, 62, most recently was Ford's Smart Mobility chairman, a subsidiary the company created past year to handle investments in autonomous vehicles and other types of mobility.

Other reports by Click Lancashire

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