Ford replaces CEO Fields; Europe chief Farley gets global role

DETROIT -- Ford Motor Co. said CEO Mark Fields is retiring and will be replaced by James Hackett, head of the automaker’s Smart Mobility arm, as part of a broad management shakeup.

Ford aims to further strengthen its core automotive business and accelerate a strategic shift to capitalize on emerging opportunities, the automaker said in a statement on Monday.

Hackett, 62, former CEO of office furniture maker Steelcase, was on Ford’s board from 2013 until last year, when he took charge of Ford Smart Mobility. Ford created that subsidiary last year to handle its investments in autonomous vehicles and new mobility services. Fields has been pouring billions into self-driving cars and ride-sharing experiments as its traditional car business has struggled in a slowing U.S. market.

Jim Farley, president of Ford’s Europe, Middle East and Africa business, is appointed executive vice president and president for global markets. In this role, Farley, 54, will oversee Ford's Americas business unit, along with Europe, Middle East & Africa and Asia Pacific, Ford said. In addition, Farley will oversee Lincoln and global marketing and sales.

Joe Hinrichs, head of Ford North America, becomes executive vice president and president of global operations. In this role, Hinrichs, 50, will oversee Ford’s global product development, manufacturing, quality, purchasing among other responsibilities.

Marcy Klevorn, 57, vice president of information technology and chief technical officer, will take over Hackett’s role as chairman of Ford Smart Mobility.

Stock down

Fields, 56, had been under pressure for the company’s lagging stock price and lower-than-expected profits so far this year. Board members had recently reportedly questioned Fields’ strategy for the future of the company, which relies on heavy investments in driverless and electric vehicle technology. Since Fields took over as CEO from Alan Mullally in July 2014, Ford’s stock price has fallen nearly 40 percent.

Last week, Ford announced it would slash 1,400 salaried workers in North America and Asia as a cost-cutting move as it continues to spend on what it calls “emerging opportunities.” That type of move, normally reserved for distressed business units and economic downturns, came amid a relative boom time for the industry.

Ford career

Before he was named CEO, Fields served in a number of positions, including COO and president of the Americas. During his time leading the Americas, Fields was the architect of Ford’s “Way Forward” plan to restructure the business as its profits disappeared during the last industry downturn. He also served as CEO of Mazda.

When he took over for Mulally in 2014, Fields inherited an automaker on the verge of posting record profits. He also oversaw the transformation of the profit-generating F-150 to include an aluminum body, as well as dozens of other product launches. Fields also appointed a separate president to head the Lincoln Motor Co. in an effort to revive the luxury brand.

Executives, including Chairman Bill Ford, praised Fields early on and said the transition between CEOs had been seamless.

But Fields came under fire in recent years as Wall Street remained unimpressed with Ford’s profits and plans for the future. At last year’s annual meeting, one shareholder even asked to bring back Mulally -- a popular figure who helped save the company during the financial crisis.