An abrupt change at the top at Ford

Fun comes to the blue oval

THE abrupt departure of Ford’s boss, Mark Fields, which the firm announced on May 22nd, has two explanations. Investors had become restive at its performance, particularly in the past year. But Mr Fields was also perceived to lack the drive of Alan Mulally, the man he succeeded. In replacing him with Jim Hackett (pictured), who ran an office-furniture company before joining Ford’s board in 2013 and more recently led the firm’s mobility unit, Ford hopes to conquer current problems and shore up its future strategy.

Ford’s shares have declined by nearly 40% since Mr Fields took over (see chart). Though it made record profits in 2015 and had strong results in 2016, investors reckoned a booming North American market, on which it relies for nearly two-thirds of revenues, would slow. They also disliked the fact that Mr Fields had to invest heavily in new technologies. Ford suffered the ignominy of its market capitalisation being…Continue reading

from Business and finance http://www.economist.com/news/business/21722661-switching-bosses-sign-uncertain-future-abrupt-change-top-ford?fsrc=rss

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