James Hackett to replace Mark Fields as Ford's CEO

According to multiple media sources, Ford, in a surprising move, is believed to have fired its Chief Executive Officer (CEO) - Mark Fields. He will be replaced by James Hackett, who is currently serving as the head of the Ford Smart Mobility LLC subsidiary. An official announcement about the said managerial shake-up is expected to be made later today.

The decision to replace Mark Fields was reportedly taken after the board of directors and investors of the American automaker expressed concern over the company's falling share prices and reducing profit percentage. Reports suggest that during Mark Fields' three year long tenure as the Ford CEO, the company's shares dropped by around 40 percent. He also faced sharp criticism for Ford's constantly deteriorating financial results during the company's annual shareholders' meeting earlier this month.

Sources closer to the company have further indicated that Ford's Chairman - Bill Ford Jr. has also been unhappy with Fields' inability to take critical decisions about the company's future strategy. The top-level management at Ford has reportedly held Mark Fields responsible for the company's slow efforts in developing high-tech cars for the future.

James Hackett (62), who is being touted as Fields' replacement, has been serving as the head of Ford's smart mobility subsidiary since March 2016. Prior to this role, he has also been a Ford director for three years. He was earlier designated as the chief executive of Steelcase, an office furniture company. Hackett was a part of Steelcase for 30 years, and is said to have been responsible for revolutionizing the company's product portfolio and converting its brand image from a conventional office furniture manufacturer to a designer of unconventional and modern workspaces that promoted open working environment.

Ford is expecting a pre-tax profit of US$ 9 billion this year. However, the automaker has been reporting a drop in sales and revenue from the past couple of years. This is despite the fact that the company's flagship F-Series pickup truck is bringing in hefty profits. However, the automaker has recorded a 25 percent drop in car sales this year. Moreover, the profit margin on some of its best-selling cars is alarmingly low, which is negatively affecting the company's overall profitability.

In addition to Mark Fields' reported departure, the company is also making some other changes lower down the hierarchy. Joseph R. Hinrichs, who is currently the head of Ford’s American division, will become executive vice-president for global operations. James D. Farley Jr. - head of Ford’s European unit, will oversee worldwide sales & marketing. Mark Truby, head of Ford's marketing teams in Asia and Europe, will now lead global communications. Marcy Klevorn, Ford's Chief Technical Officer (CTO) will get additional charge as chief of mobility initiatives, replacing James Hackett.

Source: New York Times