The Strategist

Ford CEO is stepping down

08/05/2020 - 06:03

On Tuesday, August 4, American automaker Ford announced the resignation of the company’s CEO and President Jim Hackett. He will be succeeded by the current Chief Operating Officer Jim Farley, who will take over these positions on October 1. He has already been elected to the Ford board.

Gerald R. Ford School via flickr
Gerald R. Ford School via flickr
Mr. Hackett is stepping down in the midst of a $ 11 billion restructuring of the company, which should, among other things, lead to greater focus on the development of new vehicles, including electric vehicles. According to the American media, the resignation of Mr. Hackett, who took up Ford just in 2017, came as a surprise. Moreover, in their opinion, it reflects the fact that Jim Hackett, who previously headed the furniture manufacturer Steelcase, failed to win the trust of the company's investors.

Ford finished last year with a net profit of $ 47 million against $ 3.68 billion in 2018, after which its shares fell more than 11%. Overall, during Mr. Hackett’s tenure, Ford shares have dropped 40%. After the publication of the announcement of his resignation, they grew by 3%.

Mr. Farley has been with Ford since 2007. He headed various divisions of the company, and in February this year he was appointed chief operating officer.


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