TSC Ford Specialist likes to keep you informed about all the latest Ford news, including the recent report that Ford has replaced CEO, Mark Fields. The announcement came in early May of this year, and it was reported that in his three-year period as CEO, shares dropped 40% and he failed to expand the company’s core business and development of future high-tech vehicles.
Mr. Fields had been trying to strengthen Ford’s bottom line request by cutting 1,400 salary jobs. But, unfortunately, the stock decline did not waver, and he ran out of time to carry out his plan to decrease costs and expand Ford’s lineup of trucks, sport utility vehicles, and autonomous cars, as well as electric vehicles. General Motors and Google giants were already well ahead of the game in testing self-driving vehicles, and it looks like Ford can expect something along those lines by 2021.
The report from the annual meeting shows that in the first quarter, profits declined by 30% from the year before, and the American market share decreased slightly as well. The fault is not all of Mr. Fields, however, as there has been a decrease in the U.S. market in the last two years with auto sales in general. Let’s not forget that Mr. Fields was also front and center of the plan to build a $1.6 billion assembly plant in Mexico for small cars. This plan was then abandoned early in the year because sales stalled and President Trump’s election brought immense pressure on Ford to make vehicles in the U.S.
Another point to mention is the heavy-duty safety regulations that have been imposed in the past few years. Ford had many safety recalls that raised a few eyebrows on the quality of workmanship within the manufacturing areas. And with the decline of small and midsize car sales, Wall Street is suggesting that Ford should drop some of its models that are not profiting the company overall.
So, who will be replacing Mr. Fields? Enter, James Hackett. At 62 years of age, he is an expert in turning companies around that are having some issues. The need for faster decision making in the future is imperative, and Mr. Hackett looks just like the man to do that. After all, he was responsible for overhauling furniture maker Steelcase, Inc. and then also aided in helping turn around the University of Michigan’s football program. He also helped oversee Ford’s acquisition of San Francisco ride-sharing company Chariot and its $1 billion investment in Argo AI, which was a self-driving startup focusing on robotics and artificial intelligence.
While change is inevitable, and times are also changing, it may be a good thing that Ford has replaced CEO, Mark Fields and is looking to make some better and more sophisticated choices when it comes to the outlook of Ford and its lineup of vehicles. TSC Ford Specialist stands behind such a great auto maker and the top seller of built tough trucks. Our dedicated employees are honest and knowledgeable and will always service and maintain your Ford vehicles to the best of their abilities. Call us today!