Ford Motor CEO and President Jim Hackett announced his plans to “retire from the company” on October 1 as the carmaker’s massive restructuring plan has so far not impressed investors.
Hackett will be replaced by Jim Farley, Ford’s current COO, on October 1. The two executives will work together for a smooth transition period over the next two months.
Ford’s surprising announcement means that Jim Farley will become the company’s third CEO in six years in yet another government shakeup.
“My goal when I took on the CEO role was to prepare Ford to win in the future,” Hackett said. “The hardest thing for a proud, long-lived company to do is change to meet the challenges of the world it’s entering rather than the world it has known. I’m very proud of how far we have come in creating a modern Ford and I am very optimistic about the future.”
Jim Hackett took over Ford in May 2017 after his predecessor Mark Fields was ousted. He’s responsible for the carmaker’s controversial restructuring plan, which includes Ford cutting almost every car nameplate from the range in favor of SUVs and trucks. Ford’s shares have lost nearly 40 percent of its value since Hackett became the company’s CEO.
However, Hackett said that “the fruits of our labor” are going to be seen once models like the new Ford Bronco and Mustang Mach-E launch in the market.
Jim Farley has been at Ford since 2007, holding various positions such as head of Lincoln, global head of sales and marketing, and Chief Operating Officer. Farley, along with Hackett, is credited with forcing a redesign of the electric SUV that eventually became the Mustang Mach-E and the decision to make it a Mustang model, Reuters reports.
“I love Ford and I am honored by the opportunity to serve and create value for Ford’s employees, customers, dealers, communities, and all of our stakeholders,” Jim Farley said. “Jim Hackett has laid the foundation for a really vibrant future and we have made tremendous progress in the past three years. I am so excited to work together with the whole Ford team to realize the full potential of this great company in a new era.”