Ford's New CEO: "Competitors Are Amazon and Apple"... Announces Major Transformation

Jim Pally COO to Become CEO Starting October 1
Sudden Change Amid Performance Challenges Due to COVID-19 and Others

▲ Jim Farley, newly appointed CEO of Ford and current COO [Photo by AP News]

[Asia Economy Reporter Kwon Jae-hee] Jim Farley, Chief Operating Officer (COO) of the American automaker Ford, has been appointed as the new Chief Executive Officer (CEO).

On the 4th (local time), Ford announced that COO Jim Farley will assume the position of CEO starting October 1.

Farley, who was appointed as the new CEO, spent most of his career at Toyota before joining Ford in 2007 as the head of global marketing and sales. At Ford, he was in charge of the luxury brand Lincoln and later held various positions including head of sales for Europe and South America. Before being promoted to COO last March, he oversaw Ford’s new business, technology, and strategy divisions.

COO Farley stated, "My perspective as CEO is simply to load our weapons well and execute them effectively," adding, "The evaluation of this will be proven by the numbers." He also predicted Ford’s transformation by saying, "Ford’s future competitors will likely be Amazon, Baidu, Tesla, and Apple."

This CEO change is interpreted as a decision made under the judgment that new leadership is needed due to the impact of the recent COVID-19 pandemic on the automotive industry, new business development, and Ford’s stock price decline over several years.

Until now, CEO Hackett had been conducting restructuring aimed at reorganizing the company’s business structure, including electric and autonomous vehicles, by investing $11 billion (approximately 13 trillion KRW), but he reportedly failed to deliver significant results, drawing criticism from investors.

Moreover, the decisive factor for the CEO replacement was the 39.7% drop in Ford’s stock price over about three years since Hackett took office in May 2017. During the same period, the S&P 500 index rose by about 40%.

CNBC reported, "The $11 billion restructuring plan pushed by CEO Hackett failed to impress investors, leading to his sudden retirement."

CEO Hackett is expected to remain with the company as a special advisor until March next year.

Bill Ford, great-grandson of founder Henry Ford and chairman, said, "I think the second quarter, which showed better performance than we expected, is a good moment for transition," and expressed gratitude for "what Jim Hackett has done for Ford’s future and victories."