Ford CEO James Hackett reveals the company’s first mass-market electric car the Mustang Mach-E, which is an all-electric vehicle that bears the name of the companys iconic muscle car at a ceremony in Hawthorne, California on November 17, 2019.
Mark Ralston | AFP | Getty Images
Ford Motor CEO and President Jim Hackett will unexpectedly retire in the midst of an $11 billion restructuring plan that has failed to impress Wall Street and investors.
Hackett, 65, will be succeeded by his heir apparent, Jim Farley, Ford’s chief operating officer, effective Oct 1. Farley, 58, will work with Hackett on a “smooth leadership transition over the next two months,” according to the company.
The leadership shakeup will make Farley the fourth CEO of the automaker since the Great Recession, which nearly bankrupted the automaker.
Since beginning to lead Ford in May 2017, Hackett, a former CEO of furniture company Steelcase, has done little to create confidence in the automaker on Wall Street – a reason his predecessor, Mark Fields, was ousted after a less than three-year tenure.
As of Monday’s close, shares of Ford are down 39.7% under Hackett to $6.69. The stock, which has a market value of $26.1 billion is down 28% in 2020.
Hackett will continue as a special advisor to the company through March 2021, according to Ford.
“I am very grateful to Jim Hackett for all he has done to modernize Ford and prepare us to compete and win in the future,” Bill Ford, Ford’s executive chairman, said in a release.
The former furniture executive won favor with Ford, great-grandson of company founder Henry Ford, because of his reputation in Silicon Valley and motivational skills.
This is a breaking news story. Please check back for updates.