According to some officials, Ford Motor has decided to replace its chief executive, Mark Fields. This unexpected move reflects the enormous pressure the American auto industry has to endure at the moment. According to reports, Jim Hackett, the man who is currently taking care of the company’s autonomous vehicle subsidiary, will take his place. Fields’ time as CEO lasted for three years, period during which the company’s shares dropped 40 percent. He also received harsh criticism from investors and from the board because of his failure to expand Ford’s auto business. He was also scolded for not moving fast enough when it came to developing high-tech cars for the future.
Ford Motor fires its CEO
It is interesting that this move happens only two weeks after Fields received another round of criticism during the company’s annual shareholders meeting. This happened because Ford’s financial results were beginning to deteriorate. As for Jim Hackett, he is 62-years old and chief of the office at the Steelcase furniture giant. He is also a former Ford director who only last year became the head of the company’s operation which also deals with autonomous driving.
Last week, Fields, 56, began cutting about 1,400 salaried jobs in order to make the company stronger. However, he moved too slow and time ran off. And even if Ford spent huge amounts of money on driverless technology, other companies like General Motors and tech giants like Google are well ahead of it. They are already testing autonomous vehicles on the roads of United States. Until now, Ford has promised to put its first self-driving car on the road by 2021.
Moreover, electric vehicle-maker Tesla will bring an autonomous vehicle to the market later this year. At that annual meeting, Fields seemed positive and said that the company can still keep up with the competition. However, the numbers are saying otherwise. Ford has begun to decline. Only in the first quarter, the profit dropped about 30 percent from last year. Also, auto sales in the United States are also facing a decline, after two years in which it set records. This year, Ford’s car sales have decline with 25 percent. Also, it is not making too much money on the cars it manages to sell.
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