Ford Smart Mobility boss, James P. Hackett, is expected to assume the position of CEO.
[Update] Ford has announced it will host a news conference from 9:45 AM (EDT) and will broadcast the event at jpitel.com/FordNewsConference.
Sources close to Ford have revealed the company is preparing a major management shakeup and the first to go is none other than its CEO, Mark Fields. An official announcement is expected to be made in the coming hours when the Blue Oval will likely announce the name of its new boss. People familiar with the matter are saying James P. Hackett, head of Ford Smart Mobility LLC subsidiary, will be named as Ford’s new CEO.
The significant reorganization will allegedly also include promoting some of the current executives to higher positions, with Ford Europe’s president James Farley as well as Ford North America’s boss, Joseph Hinrichs — both set to assume more important roles within the company very soon.
As to why all this is happening, Ford’s shares have gone down by a whopping 40 percent since Mark Fields took over as CEO back in mid-2014 when he replaced Alan Mulally. In addition, market share has also diminished in the last three years, thus prompting the head honchos at Ford to rethink the management structure in a bid to recuperate some of the loss in the years to come. One insider cited by Forbes said the following: “without Alan [Mulally], it’s back to the inmates running the asylum.”
62-year-old James P. Hackett was a Ford director for three years prior to being named the chairman of the aforementioned Ford Smart Mobility LLC subsidiary a little over a year ago. He’s an ex-chief executive of Steelcase, an office furniture company, where he worked for 30 years greatly helping with the firm’s expansion.
For the moment, Ford is not confirming or denying what is shaping up to be an imminent management overhaul: “We are staying focused on our plan for creating value and profitable growth. We do not comment on speculation or rumors.”