Ford's Key Deputies Expand Their Roles -- WSJ
May 25 2017 - 3:02AM
Dow Jones News
As new CEO focuses on strategy, two top lieutenants will steer
day-to-day decisions
By Christina Rogers
The top agenda item for Ford Motor Co. Chief Executive Jim
Hackett is carving out a clear strategy for the 114-year-old auto
maker's role in an evolving car business. For just about everything
else, he can rely on Joe and Jim.
Ford's executive shuffle, announced Monday, led to broader roles
for current Americas Chief Joe Hinrichs and current Europe Chief
Jim Farley. They'll leave specific regional duties with Mr. Farley
taking charge of "global markets," and Mr. Hinrichs running "global
operations."
The moves hand considerable sway over day-to-day decisions to
the pair of executives. As Mr. Hackett replaces Mark Fields at the
helm and looks to accelerate innovation and energize the workforce,
analysts say his top lieutenants are being positioned as candidates
to eventually succeed him for the top job.
In a note to investors, Barclays analyst Brian Johnson said the
new job descriptions signals both are "vying to take over as CEO
after Hackett's work is complete." He said "both have big
challenges and perhaps the board's thinking is this will move them
to cut deeper, act faster."
A Ford spokesman said the company doesn't comment on succession
planning.
Ford last week announced it will cut white-collar head count by
10%, or 1,400 people, in North America and Asia, following similar
actions in Europe and South America. In an interview Chairman Bill
Ford said more "hard actions" need to be taken to address
underperforming parts of the business, but declined to elaborate on
trouble spots.
Mr. Farley, 54, is an ex- Toyota Motor Corp. executive with a
sharp tongue and bulletproof resume. He was recognized by the board
as a top performer in 2016 after posting a $1.2 billion profit in
Europe, a sharp increase improvement compared with 2015.
Mr. Farley -- recruited by Mr. Ford and then-CEO Alan Mulally --
stanched red ink and increased margins to 4.2% in Europe, market
long burdened by overcapacity and pricing wars. He aimed to further
slim down Ford's European operations, targeting long-term operating
margins of 6% to 8% even as crosstown rival General Motors withdrew
from the market, selling off its Opel AG business.
Last year, Mr. Farley oversaw an effort to eliminate hundreds of
salaried jobs in Europe through buyout offers -- saving $200
million annually. He shifted focus to higher-profit cars and sport
utilities to better compete in the region.
Mr. Farley joined Ford as a rising star, coming to the U.S. auto
maker after serving as the face of Toyota's aggressive efforts to
remake its image and better appeal to youth. Mr. Farley was a key
member of Mr. Mulally's restructuring team and rolled out the
company's "Drive One" advertising campaign that has endured for
years after Ford repeatedly changed slogans and approaches.
Mr. Hinrichs, 50, made his name on the manufacturing side, and
spent the last four and half years running North America, a region
that drives nearly 90% of the company's profits. He was a candidate
to succeed former Ford Chief Executive Alan Mulally before the job
went to Mr. Fields in 2014.
An Ohio native, Mr. Hinrichs has remained a source of stability
for Ford in its most vital region amid a recent flood of new
managers and the initiation of new business ventures, including the
Smart Mobility innovation unit that Mr. Hackett headed before
becoming CEO. Ford is also working on electric cars and autonomous
vehicles at a time when profits come from U.S. dealers.
Mr. Hinrichs is a blunt leader. In 2010, with Ford on the
rebound after the financial crisis, he chastised a room full of top
executives for underinvesting in fast-growing Asian markets, which
he was running at the time.
He has tackled complex manufacturing challenges, including
moving the profitable and high-volume F-150 from a steel body to
aluminum. Well-liked by the workforce, he negotiated crucial
cost-saving labor deals that helped keep Ford out of bankruptcy and
competitive with foreign rivals.
Ford's North American operations have churned out some of the
company's biggest profits in history under Mr. Hinrichs' watch.
Bolstered by increased demand for pricey trucks and SUVs, Ford's
operating margins in the region have topped 10%, rivaling financial
results posted by luxury auto makers.
Having previously spent time at General Motors Co. and in
private equity, Mr. Hinrichs joined Ford as a plant manager in
Sterling Heights, Mich., in 2000 and quickly rose through the
company's manufacturing ranks. Within six years, he was named vice
president of North American manufacturing and later ran Ford's Asia
region, overseeing a massive industrial expansion in China.
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
May 25, 2017 02:47 ET (06:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Ford Motor (NYSE:F)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ford Motor (NYSE:F)
Historical Stock Chart
From Apr 2023 to Apr 2024