Ford Motor Company CEO and President Jim Hackett (Jim Hackett) will retire unexpectedly in a $11 billion restructuring plan that failed to impress Wall Street and investors.
Ford’s chief operating officer Jim Farley will take effect on October 1. Hackett, 65, will succeed him. Farley, 58, will work with Hackett to “achieve a smooth leadership transition in the next two months.”
The reorganization of the leadership will make Farley the fourth CEO since the Great Depression, which almost bankrupted the automaker. After the announcement, Ford Motor̵
Since he started leading Ford in May 2017, Hackett, the former CEO of furniture company Steelcase, has done nothing to build the confidence of Wall Street automakers-this is his predecessor Mark Fields (Mark Fields) Reasons for being removed after a term of less than three years.
Ford Motor Co.’s current CEO Jim Hackett (Jim Hackett) left, Ford Motor Co. (Ford Motor Co.) Executive Chairman Bill Ford (Bill Ford) on Tuesday, May 22, 2017 in Michigan Laughed at an event held at the company headquarters in Dearborn.
Jeff Kowalski | Bloomberg | Getty Images
As of Monday’s close, Ford’s stock price, led by Hackett, had fallen 39.7% to $6.69. The stock has a market value of US$26.1 billion and will fall 28% by 2020.
Hackett did not express any interest in retirement before. During an executive reorganization in February, he said: “I plan to continue this job.” He cited the close relationship with Farley, which will “realize the value the company has always hoped for.”
Hackett has been criticized for its transparency and leadership, as well as the execution of its multi-year restructuring plan, which aims to better position the automaker in fully electric and autonomous vehicles.
According to Ford, he will continue to serve as the company’s special advisor until March 2021.
Ford Executive Chairman Bill Ford said in a press release: “I am very grateful to Jim Hackett for modernizing Ford and enabling us to compete and win in the future. Everything done.”
The former furniture executive won the favor of Ford, the great-grandson of company founder Henry Ford, because of his reputation and motivational skills in Silicon Valley.
Hackett chose Farley instead of Joe Hinrichs, a long-time Ford executive. When Joe Hinrichs made structural adjustments He left the car manufacturer, and his successor was apparently in February.
Farley joined Ford in 2007 as the head of global marketing and sales. Since taking up these positions, he has held various positions, including the head of the luxury brand of the automaker Lincoln and multiple international operations in Europe and South America.