Dealers to miss Hinrichs, support Farley

DETROIT — Ford Motor Co. dealers were shocked last week at news that Joe Hinrichs, the company's president of automotive, will abruptly retire March 1, when Jim Farley becomes COO.

Hinrichs, 53, often served as the point person for Ford's retailers after Jim Hackett became CEO in 2017 and had developed a reputation as a trustworthy executive with a sharp manufacturing mind.

While many dealers voiced support for Farley, who they also enjoy working with, many admitted Hinrichs will be missed.

"It's a bit of a bombshell," said Jim Seavitt, owner of Village Ford in Dearborn, Mich. "We liked Joe a lot, no doubt about it. He was a very capable guy."

Ford executives held a conference call with dealers shortly after the executive changes were announced Friday, Feb. 7.

Dealers will get another chance to hear directly from Farley and Hackett later this week at the NADA Show in Las Vegas.

Jack Kain, who has been a Ford dealer in Versailles, Ky., for 67 years, said he thought Hinrichs was doing a good job.

"However, with the stock just falling so recklessly and so far, I guess they feel like they have to do something," Kain said.

Kain, who owns the Jack Kain Ford store near Lexington, said he hopes the change will improve the company's financial performance and new products. He said he has met Farley, admires him and thinks "he's got a good head on his shoulders."

"No doubt some changes need to be made," Kain said. "I hope this is the right change."

Ford's stock has hovered in the single digits for months and took a hit last week after the company announced a fourth-quarter loss. Hackett said the changes had nothing to do with Ford's difficulties launching the Explorer crossover but that Ford needs to improve its operational execution.

"It's unfortunate that Joe is the one that's taking the fall, but I'm really excited for Jim Farley and the creativity and vision that he brings," Rick Ricart, president of Ricart Automotive Group in Columbus, Ohio, told Automotive News.

"He truly is a design guy and a future, forward-thinking innovator that I think is the right guy that's going to take operations to the next level at Ford."

Others were more frustrated.

Steve Kalafer, CEO of Flemington Car & Truck Country in New Jersey, said the company "appears to have lost its way."

Today's Ford is "reminiscent of the Jack Nassar era," he said. Ford and the other Detroit 3 automakers "feel so threatened that they might miss out on something that they don't know what they are diving into. Billions have been wasted."

Still, Kalafer was in favor of Hackett taking the helm in 2017.

Ford "needed to make sure we were bridging a direction from the old world to the new world," Kalafer said. "We haven't done very well in the new world."

Hackett has made several executive moves.

Although Ford has lost a number of longtime leaders — including Hinrichs, CFO Bob Shanks and Marcy Klevorn, who was president of mobility — Hackett argued that Ford still has "a deep bench."

Some dealers agreed, citing the experience of Mark LaNeve, Ford's head of marketing, sales and service who enjoys a positive relationship with most dealers.

"I don't know how much change that brings to the franchise as long as Mark is in place," said Mike Maroone, CEO of Maroone USA, which has six dealerships in Colorado. "Mark is the true dealer guy."

Bob Tasca, Jr., president of Tasca Automotive Group in Cranston, R.I., said he has deep respect for Hinrichs.

"I thought he was a very knowledgeable person, but I guess it's time for everyone at some point in their lives to move on," he said. "I wish him all the luck in the world. I think he's a great guy."

But so is Farley, he said.

"He's a very dynamic person," Tasca said. "A lot of energy — a car guy. And I'm very, very excited that he's taken over as chief operating officer and look forward to working with him in the future."

Melissa Burden, Hannah Lutz and David Muller contributed to this report.