Ford Names New Chief Operating Officer in Leadership Shake-Up -- Update
February 07 2020 - 10:44AM
Dow Jones News
By Mike Colias and Christina Rogers
Ford Motor Co. said it has appointed strategy chief Jim Farley
as its chief operating officer, who will be taking over broader
responsibilities from retiring president of automotive Joe
Hinrichs.
Ford Chief Executive Jim Hackett was expected to announce the
leadership shake-up to employees Friday morning. The Wall Street
Journal earlier Friday reported the changes, which take effect
March 1.
The move comes three days after Ford missed fourth-quarter
earnings targets and issued disappointing profit guidance for 2020.
Ford cited problematic launches of key models, including a
redesigned Explorer sport-utility vehicle, as a factor for weak
results in the second half of last year.
Mr. Hinrichs, a 53-year-old longtime manufacturing guru at Ford,
was named president of automotive operations in April, putting him
in charge of the company's vast car-manufacturing network globally.
At the time, it made Mr. Farley, 57, head of new businesses,
strategy and technology, tasking him with charting Ford's course as
technological advances like electric and driverless cars disrupt
the auto business.
Mr. Farley's elevation to operations chief positions him as a
potential successor to Mr. Hackett, 64, who has led Ford for nearly
three years.
Mr. Farley has been overseeing Ford's electric- and
autonomous-car efforts, connected-car strategy and other long-term
bets. In his new role, he will take over much of Mr. Hinrich's
duties, including manufacturing and running Ford's vast
product-development and purchasing arms.
Mr. Hinrichs's pending departure comes ahead of a critical
vehicle-rollout year for Ford. The company is gearing up to
introduce late this year a revamped F-150 pickup truck, the first
redesign of its most-profitable model in about six years. The
company also plans to roll out a return of its Bronco SUV.
Mr. Hinrichs joined Ford 20 years ago and ascended through
various manufacturing jobs and ran the company's Asia region during
a time of explosive growth in China's car market. He is widely
admired inside the company, employees and colleagues have said.
In a statement, Mr. Hackett said Mr. Farley's appointment is
aimed at a goal of achieving 8% operating margins globally, roughly
double Ford's margin in recent quarters.
"Jim Farley is the right person to take on this important new
role," Mr. Hackett said. "Jim's passion for great vehicles and his
intense drive for results are well known. He also has developed
into a transformational leader with the imagination and foresight
to help lead Ford into the future."
Write to Mike Colias at Mike.Colias@wsj.com and Christina Rogers
at christina.rogers@wsj.com
(END) Dow Jones Newswires
February 07, 2020 10:29 ET (15:29 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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