Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Sign up for Axios NW Arkansas
Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters
Jim Farley will take over as Ford CEO on Oct. 1. (Photo by Spencer Platt/Getty Images)
Ford Motor Co.'s new CEO, Jim Farley, is taking the reins from his predecessor, James Hackett, at a critical time.
Why it matters: The global auto industry is shifting quickly toward electrification, automation and transportation services, but Ford has been unable to keep pace. Hackett's $11 billion global transformation, launched in 2017, was slow to materialize, frustrating investors as Ford's stock dropped almost 40% during his tenure.
- It's up to Farley, a former Toyota executive who joined Ford 13 years ago, to accelerate the restructuring while focusing on growth opportunities like software and fleet management services.
- “We know our competition today is Amazon, Baidu, Tesla, Apple, Toyota, and others. They’re well-financed and voracious companies," Jim Farley, incoming Ford CEO, told reporters Tuesday.
Farley described four goals during a call with reporters and said he'll provide more details soon:
- To grow and expand its strengths, especially battery-powered commercial vehicles like vans.
- To make software and infrastructure just as important as its products.
- To expand its lineup of affordable vehicles and services.
- To lower the cost of moving people and goods through automated vehicle technology.
Farley said the company must “swing for the fences” to fulfill its mission, including a return to 10% profit margins in North America.
- Yes, but: Doing so will be difficult in the face of the economic collapse triggered by the pandemic, which shuttered Ford plants for two months and saddled the company with debt.
For the record: While Hackett was often misunderstood because of his Socratic leadership style, the former Steelcase CEO and University of Michigan athletic director succeeded in setting the automaker on the right course, said Executive Chairman Bill Ford Jr.
- Hackett made the controversial decision to stop building unprofitable sedans, negotiated an important partnership with Volkswagen and pushed Ford into new mobility initiatives.
"He still doesn’t get enough credit for taking on the tough issues, and slaying the sacred cows of our business. He cared more about the company's reputation than his own."— Bill Ford Jr.
What to watch: “Nothing makes me happier than having a smooth transition,” Bill Ford said. "And now we have it."
- Farley takes over on Oct. 1 and Hackett will remain a strategic advisor to the company until March 2021.
This story has been updated with new details.