He succeeds Mark Fields, 56, who has elected to retire from Ford after a successful 28-year career with the company.
DEARBORN, May 22, 2017 - Ford Motor Company today named Jim Hackett as its new president and CEO and announced key global leadership changes created to further strengthen its core automotive business and accelerate a strategic shift to capitalize on emerging opportunities.
Stock shares had fallen 35 percent since Fields became CEO July 1, 2014, with investors not warming to Fields' plan to pour billions into new technologies like driverless cars as the company took on technology challengers like Uber. and Waymo.
James Hackett, who will now take up Fields' role, previously served as the Ford Director for three years before leaving the board to become the chairman of the newly formed mobility services subsidiary in March 2016.More news: Sicily Open Soderberg, Hoey lead after flirting with 59
Jim Hackett, former CEO of Steelcase, brought Jim Harbaugh to the University of MI in early 2015, prompting winning seasons, increased ticket sales and a satisfied fan base. Founded past year, Ford Smart Mobility develops technology for connected and autonomous vehicles.
Ford posted a record $1.2 billion European profit previous year but warned the impact of Britain's vote to leave the European union would put a dent in 2017 earnings.
Ford is replacing its CEO amid questions about its current performance and future strategy. Ford falls into the trap of betting too much on one individual.
During the recent annual meeting, Ford Executive Chairman Bill Ford that he and the board are frustrated by the stock decline. The unit was formed to accelerate Ford's foray into emerging mobility services. Ford is promising to have a fully autonomous vehicle on the road by 2021.More news: Nicky Hayden remains in 'extremely serious' condition, doctors confirm
Ford has churned out strong profits under Fields, reporting a record $10.4 billion in pretax earnings in 2016. He was recognized for predicting the office landscape would shift away from cubicles to an open-space environment, and transformed the traditional manufacturer of office furniture, the profile showed.
Reports of Fields' ousting come just weeks after the Dearborn based company delivered a dire set of first-quarter results, which brought about yet more share price weakness.
But investors anxious about Ford's sliding US market share and product decisions. He called Fields "an outstanding leader" who orchestrated the company's turnaround a decade ago when he was head of Ford's Americas division. Ford's US sales are down this year in part because it doesn't have offerings in popular segments like subcompact SUVs and midsize pickups.
Among Fields' bets on technology is a plan to invest $1 billion over the next five years in tech startup Argo AI. Shares of Ford were up almost 2 percent at $11.04 in pre-market trading Monday morning.More news: Miley Cyrus Says 'Malibu' Isn't a Typical Love Song