In the latest news coming from Ford, the company has welcomed its new Chief Executive Jim Hackett. Jim Hackett has replaced Marks Field followed by , dropping business prospective, lower sales, less profitability and declining share value at the US car giant since the former Chief Executive Marks Field took the office in 2014.
Ford has shown optimism and confidence on his new Chief Executive with a belief of bringing the boom in the company and has described him as “transformational business leader”.
Jim Hackett, first joined the company’s autonomous driving division last year and now has taken over as the chief executive. According to the Executive chairman Bill Ford, Jim Hackett is true visionary who is expected to bring modernity in the operations of the company that will prepare the business to meet the upcoming challenges in the future.
On the other hand, a brief analysis of the company gives us the conclusion that, company which once gave the world its first mass market car and leaded the industry is now lagging behind in terms of profitability and market share.
The apparent reason is the company’s late response to the ever changing technological advancements in the automobile industry.
Resultantly , Last month’s stock market value of Ford, fell below of Tesla. Tesla, the company which is at its start up in giving the market the electric cars. This indeed came as a shock to the all the stakeholders in the company.
Ford produces the cars with the internal combustion engine however the long – range electric and autonomous cars are the technology of tomorrow where General Motors, Toyota, and Volkswagen have already started working on this technology to stay in the business.
This is the time, where Ford needs to take some quick and transformational measures to regain its legacy it once had. Mark Field on the other hand , in spite of efforts he proved to be unpopular for the company and company took a long stride at all fronts.
According to one report, it were the shareholders that were least happy with the performance of Mark Field and showed less confidence on his plans to invest. Tense boardroom meeting were reported earlier this months, that resulted in the replacement of the Chief Executive of the company.
Also the recent statistic showed, the rival General Motors sold 9.97 million vehicles whereas Ford, was much behind in the statistics with the huge difference of just 6.65 million vehicles.
It is also important to note that, Ford employed about 200, 000 employees by the end of last year and faced a drop in 7% sales in USA and 11% in Europe in the April of this year when compared with the data of the same month last year.
Again talking about Jim Hackett, he first headed the autonomous car division where had the reputation of cost – cutting. His experience and his skill is definitely is a much needed thing for the company in the current scenario.