DETROIT -- Ford Motor Co.’s Joe Hinrichs, 53, will retire as president of automotive, and Jim Farley, 57, president of new business technology and strategy, will become COO, Ford said.
The management shakeup, effective March 1, comes three days after Ford reported disappointing earnings and Wall Street analysts pressed leadership for more details about a transformation plan that has yet to produce positive financial results. CEO Jim Hackett on Friday stressed the need to move with more urgency as the company attempts to implement elements of his self-described “fitness” plan.
Hinrichs was well-respected in Ford’s factories and among its dealers, and was seen by many as a likely successor to Hackett. He had broad authority over Ford’s automotive operations and recently helped the automaker come to terms on a new four-year contract with the UAW.
Hackett called him a “really good friend and accomplished global leader” who was “instrumental” in helping Ford survive the Great Recession and also played vital roles on issues ranging from labor to manufacturing to trade.
“To a person, he was beloved,” Hackett said. “Joe’s going to have a wonderful career. But everybody believes the momentum that we’re talking about building here is the right thing to do.”
Ford’s disappointing earnings were due in part to the botched launch of the Explorer crossover, but Hackett on Friday said the decision for Hinrichs to retire was “not tied to that at all.”
On Wall Street, Ford shares fell 1.6 percent in morning trading to $8.11. The stock earlier hit a new 52-week low.
Hinrichs had been at Ford for 19 years while Farley joined the company in 2007.
'Right person'
"Jim Farley is the right person to take on this important new role," Hackett said in a statement. "Jim's passion for great vehicles and his intense drive for results are well known. He also has developed into a transformational leader with the imagination and foresight to help lead Ford into the future."
Farley is expected to retain his role as head of Ford Smart Mobility, the company's autonomous vehicle unit, and its partnership with Argo AI, a Pittsburgh-based autonomous technology firm.
“I have a partnership with Jim Farley in that I think the two of us compliment each other really well,” Hackett said, adding he had no plans to vacate the CEO role.
In addition, Hau Thai-Tang, Ford’s chief product development and purchasing officer, will take on an expanded role and will report to Farley, Ford said. He will add responsibility for the company’s Enterprise Product Line Management and connectivity arms.
“Hau will be the primary architect as we bring together the vehicle architecture and software stack to create products, services and experiences our customers will love,” Hackett said. “ We are moving forward with an integrated approach to vehicles and connected services, all anchored in an obsession for the customer, great design and a commitment to strong returns.”
Ford survivor
Hinrichs survived an earlier attempt to terminate him in May 2017 by former CEO Mark Fields.
Days before his ouster as CEO, Mark Fields was proposing to fire Hinrichs in an effort to relieve some of the pressure he was facing from a skeptical board of directors, Automotive News reported at the time.
Fields intended to get approval from the board for his decision to fire Hinrichs during the week of May 14, sources told Automotive News.
Fields' plan backfired, however, when the board decided instead to part ways with him and communications chief Ray Day, following a Friday, May 19, meeting. Instead of a pink slip, Hinrichs was given a promotion to the newly created position of president of global operations, in charge of Ford's global product development; manufacturing and labor affairs, among other things.
The Wall Street Journal first reported the Friday management changes.
