James Hackett to take charge as Ford's new CEO

Ford shares fell 37 per cent during Fields's tenure, dropping the company's market capitalisation

Ford Motor is replacing embattled Chief Executive Officer (CEO) Mark Fields with Jim Hackett (pictured), a turnaround specialist who has been leading the automaker’s moves into self-driving cars and ride sharing.

Fields, 56, is retiring and Hackett will move up from his position as head of Ford’s Smart Mobility unit, according to a statement. Hackett, 62, revived office-furniture maker Steelcase as CEO from 1994 to 2014.

“This is a time of unprecedented change,” Executive Chairman Bill Ford said during a press conference on Monday. “A time of great change requires a transformational leader, and thankfully we have that in Jim.”

Fields came under pressure from Ford’s board this month ahead of an annual shareholder meeting where investors excoriated management for a poorly performing stock price. Ford shares fell 37 per cent during Fields’s almost three-year tenure, dropping the company’s market capitalisation to below Tesla. The automaker announced a salaried-worker buyout programme last week to show it was moving to cut costs.

“It’s surprising how quickly Fields is being replaced,” said Stefan Bratzel, director of the Centre of Automotive Management at the University of Applied Sciences in Bergisch Gladbach, Germany. “Ford isn’t exactly in crisis, but this development shows that shareholder value is more in focus,” even as carmakers face pressure to invest in technology where the payoff is uncertain.

Ford also will shuffle the direct reports beneath Hackett, with Europe Chief Jim Farley adding responsibility for the Americas and Asia Pacific regions and overseeing the Lincoln luxury brand. Joe Hinrichs, who had been leading the Americas, has been appointed president of global operations and will oversee areas including product development, manufacturing, labour, quality, purchasing and sustainability. Marcy Klevorn will take over Ford Smart Mobility after serving as chief information officer since January.

Bloomberg