Ford’s CEO Mark Fields is looking to be replaced with executive chief Jim Hackett; this is another move the auto giant makes after the investors experienced a great turbulence on the company’s stock market performance and outlook. The all-American brand has also revealed that it is looking to cut jobs and focus on manufacturing sports utility vehicles and crossovers.
Recent news revealed that the chairman of the company’s Ford unit that specializes in autonomous vehicle, James Hackett, 62, will be taking on the new high seat for the whole auto company. This is, according to Ford spokesman in Europe; "We are staying focused on our plan for creating value and profitable growth,"
Ford’s Shares under Fields’ Wings
On a tallied 3 years of Mark Fields’, Ford has experienced a total of 40% decline in their shares; it is also wise to note that at that time, the US auto industry has been on a surge and was dubbed by many as the “U.S. auto industry recovery.” Today, auto sales are looking bleaker and bleaker; the company’s profit margins are well behind one of its closest and biggest competitor, General Motors.
On the other hand, Hackett has a long reputation of being the chief executive of Steelcase, an office manufacturing Furniture Company. He joined last year and took a seat as the head of Ford’s smart mobility unit, this also includes the driverless technology department which is stirring a lot of market hype due to its growing efficiency and solid performance on eliminating harmful chemicals that damage the environment.
Ford’s New Strategy
According to Ford, they will be looking to cut a massive amount of white-collar jobs amidst the growing pressure and dwindling shares the company is experiencing. Reports revealed that the auto company will be offering financial incentives to persuade its workers to drop out the company voluntarily; last 2016, the company axed a couple of hundreds white-collar worker in Europe which apprehended $200 million worth of costs annually.
Another strategy the auto company is eyeing to do this year is gearing away from making sedans and tunnel focusing their might with the commitment to bring a working truck, pickup, and utility vehicles in general. Even with the amazing run with its sedans, they are still looking to stay away from that market, they realized that that market is saturated and crowded with foreign auto companies such as Hyundai, Kia, Nissan, and others.
From Sedans to SUVs
The fact that Ford is focusing on delivering more SUVs on the market is because of the sudden shift in consumer preference over the past years; the more safe, fuel efficient, fun-to-drive SUVs are climbing their way slowly to the top. This veer in the consumer taste can help the company to expand its margins from their high-end SUVs and crossovers, creating a new clearer path to pave in the unforeseeable future.
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