Ford CEO Jim Hackett Is Stepping Down, COO Jim Farley To Replace Him
Ford Motor CEO and President Jim Hackett is set to step down from his position by 1st October 2020 and the company’s COO, Jim Farley will replace him.
According to reports, Hackett is stepping down because the $11 billion restructuring plan he had put in motion for Ford has failed. The company has not given a reason why its President is suddenly stepping down.
Ford has only confirmed the retirement. It also revealed that Jim Hackett and Jim Farley will be working together until October, to ensure that the ‘leadership’ transition is smooth.
In recent years, Ford CEOs have not lasted in the position as others have. For example, before Hackett, Mark Fields had also left the position in less than three years.
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Fields had allegedly not shown much promise and investors had not been satisfied with him in the position. CNBC says the same thing of Hackett in its report, it wrote, “Since beginning to lead Ford in May 2017, Hackett, a former CEO of furniture company Steelcase, has done little to create confidence in the automaker on Wall Street.”
Ford has also been experiencing financial distress lately. The company had reported a 15% drop in sales after the Q1 2020, posting a loss of $2 billion.
It is also obvious that Hackett had not left the job willingly. He had said that he was not considering quitting in February 2020 when Ford had been going through an executive reshuffling.
Ford’s executive chairman, Bill Ford, had said that he appreciated all that Jim Hackett had done to ‘modernise’ the company. This is a reference to Hackett’s plans for positioning Ford as a competitor in the electric car industry.
Jim Hackett will also stay with the company until March 2021 serving in a special advisor role. Ford shares had dropped by 38% under Hackett since he took over in May 2017. It rose by almost 3% immediately after Ford announced that Jim Farley was taking over.
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