Why has Ford replaced CEO Mark Fields?

Why has Ford replaced CEO Mark Fields?

Why has Ford replaced CEO Mark Fields?

In a shake-up reflecting the pressures on the U.S. auto industry, Ford Motor is replacing its chief executive, Mark Fields, according to officials briefed on the move.

He succeeds Mark Fields, 56, who has elected to retire from Ford after a successful 28-year career with the company. Ford plans an official announcement on Monday morning, the officials said.

Stock shares had fallen 35 percent since Fields became CEO July 1, 2014, with investors not warming to Fields' plan to pour billions into new technologies like driverless cars as the company took on technology challengers like Uber. and Waymo.

Hackett has been on the Ford board since 2013 and has led the firm's Smart Mobility subsidiary since March past year, while Fields took the reins at the Detroit auto maker in 2014.

Hackett is the former CEO of office furniture company Steelcase. Toyota says profits will fall two years in a row. He was appointed to lead Ford's automotive business three years back and the company's started walking towards a downward spiral, due to its lacking efforts in future technologies.

Fields has been under scrutiny by Ford's board, which scheduled extra meeting time to drill him on his plans for reversing the company's fortunes, according to a person familiar with the discussions. The unit was formed to accelerate Ford's foray into emerging mobility services.

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Ford has churned out strong profits on his watch, reporting a record $10.4 billion in pretax earnings in 2016.

"Mark Fields has been an outstanding leader and deserves a lot of credit for all he has accomplished in his many roles around the globe at Ford", Bill Ford said. At the time, Ford said the new subsidiary will pursue merging opportunities in mobility, autonomous vehicles, customer experience and accompanying data and analytics.

Hackett will have to placate investors anxious about Ford's sliding USA market share and product decisions.

James Farley, the head of Ford's European, Middle Eastern, and African operation, and Ford North America chief, Joseph Hinrichs, will be moved to larger positions, Forbes reports.

Ford's auto sales are down 25 per cent this year - far more than the overall industry decline in the vehicle segment - and it is making little, if any, money on the cars it does sell.

Ford shares are expected to open 0.55% higher from their Friday close at $10.93 each in NY, but have fallen more than 10.4% since the start of the year. Chief Technical Officer Marcy Klevorn will reportedly take over Hackett's job as head of autonomous vehicles.

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