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Amid a $11 billion restructuring plan that failed to attract Wall Street, Ford Motor Co. (NYSE: F) announced Tuesday morning the retirement of CEO Jim Hackett.
Hackett, who decided on the mostover position in 2017 after his successful tenure with furniture company Steelcase (NYSE: SCS), will be replaced by current Chief Operating Officer Jim Farley on October 1. In the coming months, the two will work in combination to facilitate a “smooth transition of leadership.”
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F 30-year monetary data
The intrinsic of F
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Farley will be the fourth CEO of dearborn, Michigan-based automaker since the Great Recession, which led to bankruptcy a decade ago. Since then, the company has had trouble recovering, watching 3 CEOs retire and not re-route the rebound. Over the years, Ford’s monetary landscape has deteriorated as U.S. car sales deteriorate. They sning and increase debt.
Chief Executive Bill Ford, grandson of founder Henry Ford, praised Hackett’s progress and vision in a press release, thanking him for everything he has done to “modernize” the company and “prepare to be competitive and win in the future.” “
“We now have compelling plans for electric and autonomous vehicles, as well as full vehicle connectivity,” he added. “And we’re fitting in a lot more agile, which dazzles when we temporarily mobilize to build life-saving devices at the start of the pandemic.”
While the launch of the new Ford Bronco and Mustang Mach-E looks promising to revitalize the product portfolio, CNBC reported that Hackett, which in the past had shown no interest in retiring, has been criticized for its lack of transparency and leadership in execution. of its multiannual restructuring plan, which prepares the company for the production of fully electric and autonomous vehicles.
In a statement, Hackett said it was time for executives to move to Farley because of the boost of the new products, as well as the better-than-expected functionality, the coronavirus pandemic.
“My purpose when I took on the CEO role was to prepare Ford for the future,” he said. “The hardest thing for a proud and sustainable company is to replace to satisfy the demanding situations of the world in which it enters that the world you have experienced. I am very proud of how far we have come in creating a fashionable Ford and I am very positive about the future ».
While he will remain at the company as an advisor until March 2021, Hackett has expressed his confidence in Farley after working with him for more than 3 years.
“He played a decisive role in creating our new product portfolio and redesigning our business around the world,” Hackett said. “He is also a replacement agent with a deep knowledge of how to lead Ford into this new era explained through smart cars in a smart world.”
As for Farley, the new CEO said he “honored” through the opportunity to lead the iconic company.
“Jim Hackett has laid the foundation for long-term factual dynamics and we’ve made great progress over the last 3 years,” he said. “I am very happy to be working with the entire Ford team to realize the full perspective of this wonderful company in a new era.”
Following the announcement, Ford’s inventories increased by 3% in pre-market trade to $6.90. However, inventory has languished since even before the Covid-19 pandemic stopped production and kept the cars on the showroom floor. GuruFocus estimates that inventory has fallen by more than 20% since the beginning of the year.
According to GuruFocus Industry Overview, Ford is the third largest company in the vehicle and portion sector. Other major players are Tesla Inc. (NASDAQ: TSLA) and General Motors Co. (NYSE: GM).
Disclosure: free of charge.
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This article was first published on GuruFocus.
Warning! GuruFocus has detected 8 symptoms of caution with F. Click here to view it.
F 30-year monetary data
The intrinsic of F
Graphic by Peter Lynch by F