DETROIT -- Ford, in a sweeping management shake-up, named Jim Hackett, former CEO of Steelcase, as its new chief executive, replacing Mark Fields, who is stepping down amid pressure from shareholders over a slumping stock price and during a period of rapid transformation and disruption that is rocking the auto industry.
Hackett, who also helped revive the University of Michigan football team by hiring Coach Jim Harbaugh during a tenure as interim athletic director, replaces Mark Fields, 56, who was recently pressured by board management and shareholders over a slumping stock price and strategy.
Executive Chairman Bill Ford, speaking Monday, compared Hackett to Alan Mulally, the CEO who took over and steered Ford through the Great Recession.
“Alan captured the hearts and minds of our employees and made them feel not only could we win but that we would win,” Ford told reporters. “I think that’s something that you’ll see very much with Jim. Jim is a cultural change agent."
Hackett, 62, most recently served as chairman of Ford Smart Mobility. Ford created that subsidiary last year to handle its investments in autonomous vehicles and new mobility services. Fields has been pouring billions into self-driving cars and ride-sharing experiments as its traditional car business has struggled in a slowing U.S. market.
“I do think the vision and our role in that future has to be better,” Hackett said. “I know that that can be better and we can build enthusiasm for Ford.”
Ford said that -- even after Mulally’s changes -- the company still was too reliant on a corporate hierarchy to get things done.
“Bureaucracy and hierarchy overwhelmed what could be faster decision making,” Ford said. “The clock speed at which the world is moving, and our competitors, really requires us to make decisions at a faster pace… And we have to trust our people to move fast. It’s not command and control.”
Hackett said much of his job will involve motivating the team at Ford, something he did while at U-M and Steelcase.
“The biggest challenge, is to have everybody see the future,” he said. “It’s our right to win there. We don’t have to cede that to anybody. Tesla, anybody.”
Ford said Fields has elected to retire from Ford after 28 years with the company. Ford said company directors made the decision after a Friday board meeting.
“Mark had a tremendous career at Ford and did great things,” Ford said. “He put us financially in a great position to chart the future.”
Of the decision to let Fields go, Ford said that “No decision like this is made hastily. There had been discussions for some time.”
Other major moves
In addition to the CEO changes, Ford announced:
Jim Farley is appointed executive vice president and president, Global Markets. He previously served as president of Ford’s Europe, Middle East and Africa. Farley will be returning to Ford headquarters in the U.S., a spokesman said.
Among his new duties, Farley will preside over the Lincoln luxury brand. Lincoln President Kumar Galhotra will report to Farley.
Joe Hinrichs, formerly president of the Americas, was appointed executive vice president and president, Global Operations.
Raj Nair will continue to serve as head of Ford product development, and will report to Hinrichs, a spokesman said.
Marcy Klevorn is appointed executive vice president and president, Mobility.
Those three appointments are effective June 1. New leaders to succeed Hinrichs, Farley and Klevorn will be the subject of a future announcement, Ford said.
Paul Ballew was also appointed vice president and Chief Data and Analytics Officer.
Mark Truby also replaces Ray Day as head of communications. Day will stay on to “provide consulting services” through the end of the year. Truby will report to Bill Ford.
Forbes first reported the management changes Sunday night.
Ford shares rose 2.1 percent to close at $11.10 in New York.
Stock down
