In a surprise move, Ford’s automotive chief Joe Hinrichs will retire after 19 years with the company, leaving Jim Farley, who currently oversees Ford’s mobility projects, as the heir apparent to lead the Dearborn-based automaker. Farley will take on the new position of chief operating officer.
The tenure of current CEO Jim Hackett has always been seen as a relatively short-term posting and the horse race to succeed him was between Hinrichs and Farley, both of whom have held top positions for years. In his new role, Farley will be responsible for all global markets and automotive operations, Ford Smart Mobility, and autonomous-vehicle development.
Also taking on more responsibility is Hau Thai-Tang, who will continue to lead product development and purchasing while adding responsibility for enterprise product line management and connectivity. Hinrichs earned a reputation as a problem solver as he oversaw operations around the world, labor negotiations and manufacturing operations.
Hackett said he has been working since he joined as CEO in June 2017 to get the right direction and leadership. After Wall Street complained yet again this week that Ford is taking too long to execute its transformation, Hackett told reporters on a conference call today that the leadership change is designed to speed up the process of improving the company’s fitness and investing in the tech of tomorrow. “The time is to move with urgency is now,” he said.
Hackett described Farley as a “transformational leader.” For his part, Farley said it’s time to execute and bring Hackett’s vision to life.
But Ford stock fell to a 52-week low on the news that Hinrichs, a well-respected leader, is leaving the company. Hinrichs leaves as Ford prepares for a year of important launches including a new F-150 full-size pickup, the return of the Ford Bronco, and the Mustang Mach-E electric SUV. Hinrichs oversaw development of the iconic vehicles and is also credited for ensuring years of labor peace, building Ford’s China operation from scratch, and being active in trade negotiations within NAFTA as well as with China.
As for how long Hackett will stay in the top job, he declined to give a timeline. “I plan on staying in this job and working with Jim closely,” he said, adding that it is the board’s responsibility to manage the succession plan.
Farley has a big job as Ford has weathered financial woes and a stock price that’s remained weak as it works to update its product lineup and introduce more electric and autonomous vehicles. All this while the company seeks to cut costs and is discontinuing many of its car lines.
“Jim Farley is the right person to take on this important new role,” Hackett said. “Jim’s passion for great vehicles and his intense drive for results are well known. He has also developed into a transformational leader with the imagination and foresight to help lead Ford into the future.”
Farley, 57, joined Ford in 2007 as global head of marketing and sales and went on to lead Lincoln, Ford South America, Ford of Europe, and all Ford global markets in successive roles. Since April, Farley has led Ford’s New Businesses, Technology, and Strategy team, helping Ford determine how to capitalize on the powerful forces reshaping the industry—forces such as software platforms, connectivity, AI, automation, and new forms of propulsion.
He will oversee all of Ford’s global markets and automotive operations, including product development; purchasing; enterprise product line management; manufacturing and labor affairs; marketing, sales, and service; and quality and new model launch. He will also retain leadership of Ford Smart Mobility, Ford’s AV LLC, and Ford’s partnership with Argo AI.
All announced changes will be effective March 1.