James Hackett, CEO of Ford, unveiled the company's first mass-market electric car, the Mustang Mach-E, a fully electric vehicle named after the company's legendary muscle car, at a ceremony on November 17, 2019 in Hawthorne, California wearing.
Mark Ralston | AFP | Getty Images
Jim Hackett, CEO and President of Ford Motor, will unexpectedly retire amid a $ 11 billion restructuring plan that hasn't impressed Wall Street and investors.
Hackett, 65, will be replaced by his heir, Jim Farley, Ford's Chief Operating Officer, effective October 1. 58-year-old Farley will work with Hackett to "smoothly change leadership over the next two months," the company said.
The change in leadership will make Farley the automaker's fourth CEO since the Great Recession, which almost made the automaker bankrupt.
Since Hackett, a former CEO of the furniture company Steelcase, started running Ford in May 2017, he has done little to build trust in the automaker on Wall Street – a reason why his predecessor displaces Mark Fields after less than three years in office has been .
At the close on Monday, Ford's Hackett shares fell 39.7% to $ 6.69. With a market value of $ 26.1 billion, the stock fell 28% in 2020.
According to Ford, Hackett will continue to serve as the company's special advisor until March 2021.
"I am very grateful to Jim Hackett for everything he has done to modernize Ford and prepare us to compete and win in the future," said Ford Ford CEO, Ford, in a press release.
The former furniture manager won favor with Ford, the great grandson of company founder Henry Ford, because of his reputation in Silicon Valley and his motivational skills.
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