Mark Fields Out as Ford CEO; Replaced by Jim Hackett

In a startling move, Ford has ousted CEO Mark Fields, 56, after months of speculation and three years of declining stock prices.

Fields is replaced by Jim Hackett, the former board member who took over a new mobility unit created by the company to expand into new areas of transportation. As the head of Ford Smart Mobility, he was tasked with helping Ford meet new mobility needs of the future such as traffic congestion and technology changing how people get around. Hackett will report to Ford Executive Chairman Bill Ford.

Ford shares have fallen 40 percent since Fields took over the top spot from former CEO Alan Mulally and upstart Tesla passed Ford in market value. Ford has also seen profits and market share decline, a slide that will be tough to reverse as the U.S. auto market cools off, prompting Ford to cut 1,400 salaried jobs. Part of the profit drain has been expensive recalls, prompting questions about Ford’s quality at the recent annual shareholder meeting.

Ford says Fields has elected to retire after a 28-year career with the company. Fields has been with Ford for most of his career and worked hard to show Mulally and the board that he was the man for the top job. But the board has questioned his strategies, given the market’s lack of response to initiatives to branch out to embrace more aspects of mobility including ride sharing, connectivity, and autonomous vehicles. Prior to the recent annual shareholder meeting, the board convened for an extra day for further clarification from Fields about his vision and strategy for the future.

Gone with Fields is the head of communications, Ray Day, also a longtime employee and the man entrusted with drafting Ford’s message. He is replaced by Mark Truby, a former Detroit News reporter and a person long viewed as a possible successor to Day.

Hackett was CEO of furniture giant Steelcase until 2014, and he has a strong relationship with Bill Ford. At age 62, he is viewed as an interim leader.

Possible longer-term replacements include Joe Hinrichs, president of The Americas, who becomes executive vice president for global operations. Hinrichs has been well respected and successful in his many posts around the world for Ford.

Also Jim Farley, who is head of Ford of Europe, expands his responsibilities to oversee global sales and marketing as well as Lincoln. Farley has done some of his best work in the marketing field.

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