Ford Motor Co is expected to announce the departure of Chief Executive Mark Fields in a broad management shake-up, a company source said - a move that reflects growing investor unease over the company's stock market performance and outlook.
Ford Smart Mobility was formed in 2016 as an effort to accelerate the company’s metamorphosis into an auto and mobility company. Its aim was to aggressively pursue emerging opportunities and “be a leader in connectivity, mobility, autonomous vehicles, the customer experience and data and analytics,” according to Ford. Hackett’s promotion is a clear sign that Ford thinks the transformation isn’t happening quickly enough. Ford’s car sales are down 25 percent this year and Tesla recently overtook both Ford and GM in terms of market capitalization.
On Friday, Silicon Valley electric car maker Tesla Inc was valued at $51 billion, more than Ford's $43 billion. The contrast is a dramatic sign of how little confidence investors have that old-line automakers can transition to a future where software substitutes for pistons and transportation is sold by the mile or the minute.
At the same time, GM is turning up the pressure on Ford in the North American truck and sports utility business, the source of 90 percent of Ford's profits.
Ford is moving to cut costs to offset declining U.S. sales. Last week, the automaker said it would cut 1,400 salaried jobs in North America and Asia through voluntary early retirement and other financial incentives.
Ford is seemingly included in this procedure.