Ford (F) unveiled a dramatic operational and management shake-up on its CEO Jim Farley’s first day in the role, as the automaker continues to seek a turnaround. Ford stock wobbled.
Among leadership changes, Ford announced the exit of CFO Tim Stone. His replacement, John Lawler, most recently led Ford’s autonomous vehicle unit and has 30 years at the company.
In its executive reshuffling, Ford also plans to replace its chief information and chief marketing officers. It will name their successors shortly.
Meanwhile, Ford will invest even more in emerging growth areas like electric vehicles, self-driving cars and shared mobility businesses.
The No. 2 U.S. automaker will boost its commercial vehicle unit with more software and subscription services as well.
Shares of Ford rose 1.3% to 6.74 on the stock market today. Ford stock closed right on its 200-day line and is still below the 50-day line after hitting a decade-plus low in March’s coronavirus sell-off. Rival General Motors (GM) climbed 2.7%, and Fiat Chrysler (FCAU) edged up 0.1%.
Under Farley, Ford’s objectives include top-line growth, adjusted EBIT margins of 8%, and strong automotive free cash flow, Ford said.
On Aug. 4, Ford abruptly named Farley as its new CEO. That came after former CEO Jim Hackett’s $11 billion restructuring plan failed to enthuse investors or reignite Ford stock.
Ford hired industry outsider Hackett for the top job in May 2017. He replaced former CEO Mark Fields, who also suddenly retired after Ford’s efforts to transform failed to impress.
Find Aparna Narayanan on Twitter at @IBDAparna.
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