Ford's Jim Hackett to retire October 1, 2020.
08-04-20, 03:06 PM
#1
Lexus Fanatic
Thread Starter
Ford's Jim Hackett to retire October 1, 2020.
Ford CEO Jim Hackett is stepping down on October 1, in favor of COO (Chief Operating Officer) Jim Farley.
I've got mixed opinions on Hackett's performance. There is no question the Lincoln Division had major improvements under his watch (it is now considered a legitimate luxury-division, instead of just rebadged Fords ), but the decision to drop most of the Ford/Lincoln sedans and passenger cars is going to come back to haunt the company. Plus, the launch of the latest Explorer and Aviator turned out a disaster with QC problems. I also thought the design and execution of the new Explorer, particularly the interior, was a disappointment.
https://www.cnbc.com/2020/08/04/ford...im-farley.html
PUBLISHED TUE, AUG 4 20209:00 AM EDTUPDATED 3 HOURS AGO
Michael Wayland@MIKEWAYLAND
KEY POINTS
WATCH NOW
VIDEO03:38
Ford CEO Jim Hackett to step down October 1Ford Motor CEO and President Jim Hackett will unexpectedly retire in the midst of an $11 billion restructuring plan that has failed to impress investors.
Hackett, 65, will be succeeded by his heir apparent, Jim Farley, Ford’s chief operating officer, effective Oct 1. Farley, 58, will work with Hackett on a “smooth leadership transition over the next two months,” according to the company.
Also see: How incoming Ford CEO Jim Farley expects to woo Wall Street
The leadership shakeup will make Farley the fourth CEO of the automaker since the Great Recession, which nearly bankrupted the automaker a decade ago. Ford shares jumped nearly 3% following the announcement Tuesday, but gave up about half the day’s gains by afternoon trading.
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 — a reason his predecessor, Mark Fields, was ousted after a less than three-year tenure.
Jim Hackett, incoming chief executive officer of Ford Motor Co., left, and Bill Ford, executive chairman of Ford Motor Co., laugh during an event at the company’s headquarters in Dearborn, Michigan, on Tuesday, May 22, 2017.
Jeff Kowalsky | Bloomberg | Getty ImagesShares of Ford are down about 40% under Hackett. The stock, which has a market value of $26.1 billion, is down 28% in 2020.
Hackett previously had not expressed any interest in retiring. In February, amid an executive shakeup, he said, “I plan on staying in this job.” He cited a close relationship with Farley that would “realize the value” the company has been promising.
Hackett said now was the right time to transition to Farley because the company has momentum from its recent product unveilings, including the Ford Bronco and a better-than-expected performance during the coronavirus pandemic.
“The wind in our sails is really starting to pick up,” he told reporters during a call. “Jim (Farley) had a big role in that, and I can feel confident that the things I was asked to do have really started to take root.”
Hackett has been criticized for his lack of transparency and leadership and for the execution of his multiyear restructuring plan that aimed to increase profitability by focusing on core products and all-electric and autonomous vehicles.
“Hackett had a shot. He was there for three years, not really a car guy,” said David Kudla, CEO and chief investment strategist of Mainstay Capital Management in Grand Blanc, Michigan. “We struggled early on with what was his vision for the company.”
Kudla, who closely follows the automotive industry, believes it’s a “good move” that will better instill confidence within and outside of the company.
Hackett will continue as a special advisor to the company through March, according to Ford.
Jim Hackett, president and chief executive officer of Ford Motor Co., right, speaks as Jim Farley, president of global markets, stands next to a 2020 Ford Motor Co. Explorer sport utility vehicle (SUV) during a reveal event in Detroit, Michigan, U.S., on Wednesday, Jan. 9, 2019.
Jeff Kowalsky | Bloomberg | Getty Images“I am very grateful to Jim Hackett for all he has done to modernize Ford and prepare us to compete and win in the future,” Executive Chairman Bill Ford said in a release.
The former furniture executive won favor with Ford, great-grandson of company founder Henry Ford, because of his reputation in Silicon Valley and motivational skills.
The chairman complimented Hackett for his leadership during the coronavirus pandemic, streamlining the automaker’s operations, forming a global partnership with Volkswagen. Hackett also shifted the company’s product portfolio away from passenger cars, among other internal actions. During the call with reporters, Ford promised a “seamless” transition to Farley.
Hackett chose Farley over Joe Hinrichs, a longtime Ford executive who left the automaker amid the executive restructuring, as his heir apparent in February.
Farley said he’s “optimistic” about the company’s growth plans for its commercial lineup as well as emerging plans for autonomous and all-electric vehicles, including the upcoming Mustang Mach-E crossover.
“We need to swing for the fences,” he said. “To grow and expand where we are already strong.”
Farley joined Ford in 2007 as global head of marketing and sales. He has held a variety of roles since then, including head of the automaker’s Lincoln luxury brand and several international operations such as Europe and South America.
I've got mixed opinions on Hackett's performance. There is no question the Lincoln Division had major improvements under his watch (it is now considered a legitimate luxury-division, instead of just rebadged Fords ), but the decision to drop most of the Ford/Lincoln sedans and passenger cars is going to come back to haunt the company. Plus, the launch of the latest Explorer and Aviator turned out a disaster with QC problems. I also thought the design and execution of the new Explorer, particularly the interior, was a disappointment.
https://www.cnbc.com/2020/08/04/ford...im-farley.html
Ford’s Jim Hackett is out as CEO, to be succeeded by Jim Farley as restructuring plan fails to reignite stock
PUBLISHED TUE, AUG 4 20209:00 AM EDTUPDATED 3 HOURS AGO
Michael Wayland@MIKEWAYLAND
KEY POINTS
- Ford Motor CEO and President Jim Hackett will unexpectedly retire.
- Hackett, 65, will be succeeded by his heir apparent, Jim Farley, Ford’s chief operating officer, effective Oct 1.
- Farley, 58, will work with Hackett on a “smooth leadership transition over the next two months,” the company said.
WATCH NOW
VIDEO03:38
Ford CEO Jim Hackett to step down October 1Ford Motor CEO and President Jim Hackett will unexpectedly retire in the midst of an $11 billion restructuring plan that has failed to impress investors.
Hackett, 65, will be succeeded by his heir apparent, Jim Farley, Ford’s chief operating officer, effective Oct 1. Farley, 58, will work with Hackett on a “smooth leadership transition over the next two months,” according to the company.
Also see: How incoming Ford CEO Jim Farley expects to woo Wall Street
The leadership shakeup will make Farley the fourth CEO of the automaker since the Great Recession, which nearly bankrupted the automaker a decade ago. Ford shares jumped nearly 3% following the announcement Tuesday, but gave up about half the day’s gains by afternoon trading.
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 — a reason his predecessor, Mark Fields, was ousted after a less than three-year tenure.
Jim Hackett, incoming chief executive officer of Ford Motor Co., left, and Bill Ford, executive chairman of Ford Motor Co., laugh during an event at the company’s headquarters in Dearborn, Michigan, on Tuesday, May 22, 2017.
Jeff Kowalsky | Bloomberg | Getty ImagesShares of Ford are down about 40% under Hackett. The stock, which has a market value of $26.1 billion, is down 28% in 2020.
Hackett previously had not expressed any interest in retiring. In February, amid an executive shakeup, he said, “I plan on staying in this job.” He cited a close relationship with Farley that would “realize the value” the company has been promising.
Hackett said now was the right time to transition to Farley because the company has momentum from its recent product unveilings, including the Ford Bronco and a better-than-expected performance during the coronavirus pandemic.
“The wind in our sails is really starting to pick up,” he told reporters during a call. “Jim (Farley) had a big role in that, and I can feel confident that the things I was asked to do have really started to take root.”
Hackett has been criticized for his lack of transparency and leadership and for the execution of his multiyear restructuring plan that aimed to increase profitability by focusing on core products and all-electric and autonomous vehicles.
“Hackett had a shot. He was there for three years, not really a car guy,” said David Kudla, CEO and chief investment strategist of Mainstay Capital Management in Grand Blanc, Michigan. “We struggled early on with what was his vision for the company.”
Kudla, who closely follows the automotive industry, believes it’s a “good move” that will better instill confidence within and outside of the company.
Hackett will continue as a special advisor to the company through March, according to Ford.
Jim Hackett, president and chief executive officer of Ford Motor Co., right, speaks as Jim Farley, president of global markets, stands next to a 2020 Ford Motor Co. Explorer sport utility vehicle (SUV) during a reveal event in Detroit, Michigan, U.S., on Wednesday, Jan. 9, 2019.
Jeff Kowalsky | Bloomberg | Getty Images“I am very grateful to Jim Hackett for all he has done to modernize Ford and prepare us to compete and win in the future,” Executive Chairman Bill Ford said in a release.
The former furniture executive won favor with Ford, great-grandson of company founder Henry Ford, because of his reputation in Silicon Valley and motivational skills.
The chairman complimented Hackett for his leadership during the coronavirus pandemic, streamlining the automaker’s operations, forming a global partnership with Volkswagen. Hackett also shifted the company’s product portfolio away from passenger cars, among other internal actions. During the call with reporters, Ford promised a “seamless” transition to Farley.
Hackett chose Farley over Joe Hinrichs, a longtime Ford executive who left the automaker amid the executive restructuring, as his heir apparent in February.
Farley said he’s “optimistic” about the company’s growth plans for its commercial lineup as well as emerging plans for autonomous and all-electric vehicles, including the upcoming Mustang Mach-E crossover.
“We need to swing for the fences,” he said. “To grow and expand where we are already strong.”
Farley joined Ford in 2007 as global head of marketing and sales. He has held a variety of roles since then, including head of the automaker’s Lincoln luxury brand and several international operations such as Europe and South America.
Last edited by mmarshall; 08-04-20 at 03:17 PM.
08-04-20, 03:10 PM
#2
New Ford CEO Jim Farley faces replaces retiring Jim Hackett
Jim Farley will take over as CEO of Ford on October 1, replacing Jim Hackett, who will retire from the company but continue to serve as a "special advisor." Hackett came to Ford in 2017 after retiring from furniture company Steelcase in 2014 after serving as its CEO for 20 years.
Farley joined Ford way back in 2007 as global head of marketing and sales, coming to the Blue Oval after a long and successful stint at Toyota and Lexus. He went on to serve as executive vice president and president, Ford Europe, Middle East and Africa, leading the European unit to record profitability and margins in 2016. He was reportedly the first person within the company to suggest that its new electric Mach-E be part of the Mustang brand. He was named chief operating officer in February of this year as part of a larger management shakeup.
In a statement, Executive Chairman Bill Ford said he was "very grateful" to Hackett and highlighted the Mustang Mach-E, recently unveiled 2021 F-150 and the off-road-ready Bronco family as high points of Ford's future. Ford's recent past, on the other hand, has been a bit rocky.
In 2018, investors were reportedly disappointed in the automaker's financial performance, and white-collar workers expressed anxiety at the company's restructuring plans. That same year, Hackett claimed the automaker was "reinventing the American car" as it killed off sedans and hatchbacks in favor of crossovers, SUVs and more pickup truck variants. Hackett called 2018 "mediocre by any standard," despite the fact that the automaker reported a profit of around $7 billion.
In 2019, Hackett admitted to "overestimating the arrival of autonomous vehicles" after investing several billion dollars in their development. And that management shakeup in February of this year that we mentioned earlier came after a 2019 earnings report that was well short of expectations, with blame put on a terrible fourth quarter punctuated by the botched launch of the Explorer SUV and a $2.2 billion one-time pension cost.
Naturally, with the ongoing coronavirus pandemic still in full gear, Ford sees more rocky times directly ahead in 2020. But even before that, Farley told investors that the automaker needed to cut $5 billion in warranty costs, successfully launch 10 key vehicles globally in the next two years and drastically cut material and logistics costs. Put simply, Farley is taking the reigns at Ford at a pivotal point in the automaker's long and storied history.
Farley joined Ford way back in 2007 as global head of marketing and sales, coming to the Blue Oval after a long and successful stint at Toyota and Lexus. He went on to serve as executive vice president and president, Ford Europe, Middle East and Africa, leading the European unit to record profitability and margins in 2016. He was reportedly the first person within the company to suggest that its new electric Mach-E be part of the Mustang brand. He was named chief operating officer in February of this year as part of a larger management shakeup.
In a statement, Executive Chairman Bill Ford said he was "very grateful" to Hackett and highlighted the Mustang Mach-E, recently unveiled 2021 F-150 and the off-road-ready Bronco family as high points of Ford's future. Ford's recent past, on the other hand, has been a bit rocky.
In 2018, investors were reportedly disappointed in the automaker's financial performance, and white-collar workers expressed anxiety at the company's restructuring plans. That same year, Hackett claimed the automaker was "reinventing the American car" as it killed off sedans and hatchbacks in favor of crossovers, SUVs and more pickup truck variants. Hackett called 2018 "mediocre by any standard," despite the fact that the automaker reported a profit of around $7 billion.
In 2019, Hackett admitted to "overestimating the arrival of autonomous vehicles" after investing several billion dollars in their development. And that management shakeup in February of this year that we mentioned earlier came after a 2019 earnings report that was well short of expectations, with blame put on a terrible fourth quarter punctuated by the botched launch of the Explorer SUV and a $2.2 billion one-time pension cost.
Naturally, with the ongoing coronavirus pandemic still in full gear, Ford sees more rocky times directly ahead in 2020. But even before that, Farley told investors that the automaker needed to cut $5 billion in warranty costs, successfully launch 10 key vehicles globally in the next two years and drastically cut material and logistics costs. Put simply, Farley is taking the reigns at Ford at a pivotal point in the automaker's long and storied history.
08-04-20, 07:39 PM
#3
Lexus Test Driver
Shuffling CEOs based on stock price is idiotic but what else can you expect from Ford.
I give Farley 2-3 years max although I think he will be better than Hackett. Calling the new CUV EV a Mustang was horrible idea already.
I give Farley 2-3 years max although I think he will be better than Hackett. Calling the new CUV EV a Mustang was horrible idea already.
08-04-20, 08:00 PM
#4
Lexus Fanatic
Thread Starter
Trending Topics
09-07-20, 05:56 PM
#8
Pole Position
09-07-20, 06:25 PM
#9
Lexus Fanatic
Thread Starter
He retired in 2014, but I think he was the one that first set the current achievements at Lincoln in motion. For that alone, he deserves an award....Lincoln has been almost totally transformed into a true Luxury-vehicle division, not just rebadged Fords.
09-08-20, 12:35 AM
#10
Mulally didn't care for Lincoln one iota.
https://www.reuters.com/article/us-f...0ID2FU20141024
09-08-20, 06:47 AM
#11
Lexus Fanatic
Thread Starter
Yes, that part of it I understand, but, by selling off Jaguar/Land-Rover/Volvo/Aston Martin, wouldn't you say that Mulally, in effect, put Lincoln in the position of being Ford's only remaining upmarket brand, and receiving the funds that otherwise would have gone to those former brands? In effect, his actions allowed Mark Fields to do for Lincoln what he later did.
09-08-20, 10:14 PM
#12
Yes, that part of it I understand, but, by selling off Jaguar/Land-Rover/Volvo/Aston Martin, wouldn't you say that Mulally, in effect, put Lincoln in the position of being Ford's only remaining upmarket brand, and receiving the funds that otherwise would have gone to those former brands? In effect, his actions allowed Mark Fields to do for Lincoln what he later did.
RWD CD6 was Mark Fields' brainchild, as well as a 2021 Lincoln RWD unibody flagship "Town Car" , 2021 Zephyr based on 2021 Mustang, RWD Continental to battle E-Class and 5-Series in 2023, and more. Aviator and Corsair were part of it, as was Navigator.
Those all died in 2017, due to his neglect of the Ford brand regarding entry-level and bread and butter (below F-Series), paranoidly anticipating an economic crash in late 2010s. He only allegedly cared about Ford icons and prestige vehicles.
However, ground zero for the redesign of the Navigator did get established with commitment to the nameplate in 2011 for the 2015 MY swan song/life support updates. That right there was Mulally and also ordering the 2017 U554 (2018 alu-Navi) for development in 2012 as well.
Execution of the final Lincoln products of new goes to Fields and his leadership of teams, with vast budgets. Mulally was responsible for mostly 2017 Continental (neé MKS) and products before 2016. 2016 MKS was dolled up a bit by Mark to keep it in line with upcoming vehicles, delayed and renamed 2017 Continental.
Hopefully I made my point on why I had great disappointment in Mulally regarding Lincoln
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