UPDATE: Ford Dumps Fields, Names Hackett as CEO

Ford Motor Co. has ousted CEO Mark Fields and restructured top management into three major functions to help reverse the company’s sagging profits and dwindling stock price.

Fields, 56, is abruptly retiring, according to Ford. He has been replaced by James Hackett, 62, as president and CEO. Hackett (pictured) is a former CEO of Steelcase Inc. and past Ford director. He was named in March 2016 to head the carmaker’s newly formed Ford Smart Mobility LLC unit.

Also replaced is Ray Day, Ford’s group vice president of communications. He will serve as a consultant until retiring sometime next year. His successor is Mark Truby, previously was vice president of communications for the carmaker’s Asia-Pacific business.

Ford says it will focus on three priorities: improving its operational efficiency; modernizing its business by leveraging such technologies as “big data,” robotics and artificial intelligence; and adjusting its culture and nimbleness to “succeed as society’s needs and consumer behavior change.”

The shakeup expands the roles of James Farley, formerly president of Ford of Europe; Joe Hinrichs, formerly head of Ford North America; and Marcy Klevorn, formerly Ford’s chief information officer and head of information technology. Under the new structure:

• Farley, 54, is president of global markets. He will oversee all businesses units, the Lincoln brand, and global marketing, sales and service.
• Hinrichs, 50, is president of global operations. He will direct worldwide product development, manufacturing and labor affairs, plus quality, purchasing and sustainability.
• Klevorn, 57, is president of mobility. She will take over the Ford Smart Mobility unit and head global IT and “data, insight and analytics.”

Ford’s directors, including Executive Chairman Bill Ford Jr., had been growing increasingly alarmed at Ford’s deteriorating performance, which has been propped up by its hugely profitable F-150 pickup truck sales. Fields was called before the board last week to articulate his vision for the company and explain how he would lead its growth.

Critics say Fields, who succeeded Alan Mulally three years ago, has been unable to focus Ford’s strategy around easy-to-understand objectives as his predecessor did.

But others note that Ford’s strategy has become considerably more complex during Fields’ tenure. Like other carmakers, the company is juggling the demands of growing its traditional business as it races to confront the impending radical changes brought on by industrywide trends in electrification, connectivity and autonomous driving technologies.

Ford’s stock price has plunged about 40% since Fields became CEO. The company’s share of the U.S. market has dropped 0.4 points to 15.1% over the same period, according to Autodata Corp.