New Ford CEO Farley announces operational restructuring and executive shakeup

New Ford Motor CEO Jim Farley is restructuring the company’s business operations, including a shakeup in its top ranks, as he succeeds Jim Hackett in leading the automaker. 

The changes are focused on streamlining operations and concentrating decision-making and accountability around product and customer groups in three regional business units – the Americas and international markets; Europe; and China. They also include increasing the company’s focus on key growth areas such as autonomous and electric technologies as well as commercial vehicles.

Objectives include top-line growth, high quality and customer satisfaction, sustained adjusted pre-tax  margins of 8%, strong automotive adjusted free cash flow, according to Ford.

“During the past three years, under Jim Hackett’s leadership, we have made meaningful progress and opened the door to becoming a vibrant, profitably growing company,” Farley, who became CEO effective Thursday, said in a statement. “Now it’s time to charge through that door.”

The goal, according to the company, is to “move with urgency to turn around its automotive operations – improving quality, reducing costs and accelerating the restructuring of underperforming businesses.”

Ford announced several executive changes with the restructuring, including the departure of CFO Tim Stone, a former Amazon executive who was a high-profile hire for Hackett. He joined the automaker in April 2019. 

Stone has accepted a position as chief operating officer and chief financial officer at ASAPP Inc., a research-driven, artificial-intelligence software company, according to Ford.

He will be succeeded by John Lawler, who most recently served as CEO of Ford Autonomous Vehicles and vice president, Mobility Partnerships, and spent much of his 30 years at Ford in finance leadership and general management.

Ford also plans to add new executives as chief information officer and chief marketing officer