Move Over Elon, There’s A New Loose Cannon In The Auto Industry

Unsplash/Jeremy Chen


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Some guys are made for the job. Some just can’t Hackett.

Current CEO of Ford Jim Hackett will retire from the automobile company in October, ending his three year run as head honcho of the company. He’ll be replaced by Jim Farley, who’s been waiting in the wings since his appointment as COO this past February. CEO requirement: have the name Jim.

Hackett took over a struggling automaker that was losing money to overseas operations. He did implement faster decision making and a new way of thinking that led to well-received vehicles (see the Bronco and Mach-E), but that wasn’t enough to lift the bottom line… or share price for that matter, which dropped 40% during his time in the driver seat.

The company, like virtually all other automakers in the US, was forced to shut down factories during COVID, relying on borrowing cash to get through the pandemic. It has since recovered, and even expects to post a profit in Q3… I’ll believe it when I see it.

So, who’s the new guy?

New Jim was moved up to the number two role when Joe Hinrichs retired from his position as president of automotive in February.

His priorities include increasing Ford’s profit in North America, increasing the quality of the vehicles, and reducing the company’s vehicle production cost in order to increase margins. And long walks on the beach.

A Credit Suisse analyst stated that Farley brings a greater sense of urgency and action… and investors seem to agree, as $F was up 1.4% on the announcement today.

The bottom line…

At least the executive admin won’t have to learn a new first name.

New Jim’s best quality, is that he’s a bit of a sparkplug.

The 58 year old published a book in 2011, and had this to say about GM:

“F— GM,” Farley said. “We’re going to beat on them, and it’s going to be fun. I hate them and their company and what they stand for. And I hate the way they’re succeeding.”

Water Cooler Talking Point(s)

💧 “Look out Elon. There’s a new loose cannon on the block.” (Nick, The Water Coolest HQ)

 

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