Ford CEO Jim Hackett is retiring, the company announced on Tuesday. He has been serving the company for the last three years as the CEO. His position will be replaced by current chief operating officer Jim Farley. To help the transition phase Hackett will stay with Ford until October and after that, he’ll be a “special advisor” through March 2021. Farley has been serving various positions in Ford for the last three decades after coming out from Toyota. He has launched a famous Scion program. During one of the conferences, he has said that “swing for the fences” while in charge of Ford. On speaking about the competition in the industry he has referred companies like Amazon, Baidu, Tesla, Apple, Toyota, and others.
Hackett was appointed as the CEO of Ford from the Smart Mobility which is a fords internal department. He replaced Mark Fields who spending more than three years as a CEO. Hackett was responsible for restructuring the entire organization that cost around $11 billion. The restructuring of the company during the early days of Hackett as a CEO saved that company from spending 25 billion US dollars. One of the main features of the restructuring of the operation was to basically abandon sedans in the US market. They have made ultimate plans to minimalize their operation in China, Europe, and South America by slashing several jobs that could save millions of dollars every month to the company.
Hackett led the way to kickstart several software-related operations towards the feature. The software feature includes self-driving cars, ride-hailing services, and micro-mobility. A team of experts have been appointed to carry out each operation that could benefit the company in the upcoming days. Hackett also initiated the collaboration with one of the leading automobile manufacturers, Volkswagon in creating trucks and vans, autonomous and electric vehicles, and more. Several other investments are made during his time serving as the CEO of the company. More than 500 million US dollars are invested over Rivian which is currently working on developing a buzzy EV startup on an all-electric vehicle for the Lincoln brand. Billion-dollar investments have been made on self-driving car manufacturer Argo the helped the company to develop a potential commercial service. The company was later sold to Volkswagon for 3.5 billion dollars which resulted in great profit to the initial investments.
Under his leadership, Ford built Mustang Mach-E, which is a company’s first long-range all-electric car. This was seen as a success for the 11 billion investment in developing electric vehicles and self-driving cars. Not all the initiatives took by Hackett have become a fruitful success, there are few drawbacks and losses the company has faced during his leadership. Ford was also one of the companies which were affected too badly after the spread of the deadly virus. The company has shown a huge loss during the last quarter of 2019 which resulted in a loss of $1.7 billion.
Recently in one of the press meet, Hackett has said that his goals were to meet the future demands while he took charge as the CEO of the company. He has also stated that its important for the company with a long history in the automobile industry to meet future challenges and transform their core to withstand the highly competitive industry. Ford has spent more than a billion dollars in developing electric vehicles for replacing the combustible engines.