Jim Hackett to Step Down as Ford CEO

Jim Hackett will be unexpectedly stepping down as the CEO of Ford Motor amid a pricey restructuring plan.

Hackett Passing the Torch to Farley

65-year-old Jim Hackett will be retiring as Ford Motor CEO and President, passing the torch to Jim Farley – the chief operating officer in the company, effective Oct. 1st. The two will be working together to ensure a “smooth leadership transition over the next two months,” the company said.

The retirement of Hackett comes as a surprise, as he previously said that he plans on staying “in this job,” as the ongoing $11 billion restructuring plan continues within the company. Hackett said, however, that now is the right time to transition to Farley and make the most out of the momentum that Ford has gotten from its most recent product unveilings.

Ford shares jumped over 3% following the announcement – perhaps a sigh of relief for Wall Street, which didn’t show much excitement over Hackett’s period as CEO. Under Hackett, Ford shares went down about 40%, with the company stock being down 28% in 2020.

Hackett will be continuing as a special advisor to the company through March, the company said, with Executive Chairman Bill Ford thanking Hackett for what he has done to “modernize Ford” and prepare the company for the future. Ford also complimented the CEO for his leadership during the coronavirus pandemic.

“We need to swing for the fences. To grow and expand where we are already strong,” Farley said.

Farley is “optimistic” about Ford’s growth plans for its commercial lineup, as well as upcoming plans for electric and autonomous vehicles.