Ford 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.
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.
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.
Shares 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.
He will continue as a special advisor to the company through March, according to Ford.
Hackett’s selection of Jim Harbaugh as head coach of the University of Michigan when he (Hackett) was acting as athletic director has proven disastrous for the school. The head coach’s job at that school, in fact, his only job, is to put a team on the field that can beat The Ohio State University. So far it’s been 3,174 days (November 26, 2011) and no Harbaugh coached team has beaten OSU.
