Ford Appoints Jim Farley As New Chief Operating Officer After Bleak 2020 Outlook

Ford has appointed Jim Farley its new Chief Operating Officer, which could make him the most probable successor to CEO Jim Hackett.

At the same time, Ford’s President of Automotive Joe Hinrichs is retiring at age 53 after a 19-year career with the company; many inside and outside the car maker saw Hinrichs as the favorite to succeed Hackett but he was also recently criticized for the company’s rising warranty costs and the poor market launch of the new  Ford Explorer.

The move comes after the company reported a larger than expected loss in the fourth quarter at $1.7 billion, while also announcing that earnings before interest and taxes for the first months of 2020 would be lower by around $1.1 billion versus last year.

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Joe Hinrichs will retire on March 1

Hackett said that Hinrichs’ retirement is not related to any of those issues. “Joe was instrumental to Ford’s ability to survive the Great Recession a decade ago without bankruptcy or taxpayer bailout, and successfully headed Ford’s operations in Asia Pacific and North America,” he said.

“Most recently, Joe oversaw our global portfolio of iconic vehicles, helped forge a long-term, mutually beneficial relationship with the UAW and was regularly sought out as an authority and promoter of smart global trade,” Ford’s COO added.

Jim Farley could become the top candidate to succeed Hackett in Ford’s top spot

Jim Farley, who joined Ford in 2007 as global Head of Marketing and Sales, has been leading the company’s New Businesses, Technology & Strategy Team since April. He’s credited along with Hackett with the redesign before its reveal of the electric Mustang Mach-E SUV and the decision to brand it as a Mustang as well.

“Jim Farley is the right person to take on this important new role,” Hackett noted. “Jim’s passion for great vehicles and his intense drive for results are well known. He also has developed into a transformational leader with the imagination and foresight to help lead Ford into the future.”