Ford Motor Company (NYSE:F) has confirmed that chief executive Mark Fields will step down amid investor worries about the carmarker’s falling share price, declining profits and weak sales.
Shares rose 2.48% to US$10.87 in US pre-market trading.
The company said in a statment that Fields will be replaced by Jim Hackett, head of Ford Smart Mobility, as part of a management shake-up to help turn around the group.
Hackett, 62, helped to revive office furniture maker Steelcase as its chief executive from 1994 to 2014 before joining Ford last year.
The departure of Fields, 56, was widely expected following a report by the New York Times.
Chairman Bill Ford, said Fields chose to retire after 28 years at the company.
“We’re moving from a position of strength to transform Ford for the future,” he said.
“Jim Hackett is the right CEO to lead Ford during this transformative period for the auto industry and the broader mobility space. He’s a true visionary who brings a unique, human-centered leadership approach to our culture, products and services that will unlock the potential of our people and our business.”
READ: Ford inches higher as reports surface that it plans to cut 10% of its workforce
Ford's shares slide as sales weaken...
Since Fields took up his role in 2014, Ford’s shares have dropped by 40% on worsening financial results.
Last week Ford announced it was cutting 1,400 jobs, or 10% of its workforce, in North America and Asia following calls from investors to reinvigorate its declining share price.
Fields was criticised at the annual shareholders meeting two weeks ago over Ford’s performance.
The firm sold 215,000 vehicles in April, 7% fewer than during the same month a year earlier.
Car sales in Europe dipped by 6.6%, the first fall since 2012. It was worse still in the UK, where April’s sales figures fell by almost 20% although this was partly due to a change in vehicle licensing rules.
First quarter net profit fell to US$1.6bn from US$2.5bn a year earlier.
Ford tackles electric vehicles and driverless car market...
Bill Ford said he and Hackett will work together to transform the company to "meet future challenges, ensuring the company has the right culture, talent, strategic processes and nimbleness to succeed as society’s needs and consumer behavior change over time."
Ford has been lagging behind competitors in the growing electric car market, including General Motors, Tesla, Toyota, and Volkswagen. Last month Ford's market valuation fell behind Tesla despite the latter having never made a profit.
Ford has appointed Jim Farley, 54, as executive vice president and president of Ford's Global Markets, to oversee the group's development for electric vehicles and driverless cars.