Autos

Ford shakes up management in a move to retool business model to high-tech auto market

Key Points
  • Ford announces major changes to key executive roles.
  • Executive Vice President of Global Operations Joe Hinrichs will become president of Automotive.
  • Executive Vice President of Global Markets Jim Farley will become president of New Businesses, Technology & Strategy.
  • The head of the automaker's mobility investments unit, Marcy Klevorn, will retire this October.
Jim Farley, Ford Motor Company Executive Vice President and President of Global Markets, reveals the 2020 Ford Mustang Shelby GT 500 at the 2019 North American International Auto Show during Media preview days on January 14, 2019 in Detroit, Michigan.
Bill Pugliano | Getty Images

Ford announced a big management shakeup Wednesday, shifting around key executives to retool its business model toward the future car market, including moving Joe Hinrichs from executive vice president of Global Operations to president of Automotive.

In this role, he will oversee product development, purchasing, manufacturing, marketing and sales, as well as be responsible for the company's global business units around the world, the company said.

Executive Vice President of Global Markets Jim Farley will become president of New Businesses, Technology & Strategy. He and Hinrichs will assume their new roles May 1.

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Ford Mobility group's president, Marcy Klevorn, will retire in October. Klevorn has overseen Ford's investments in new businesses outside selling cars, such as shuttle services, scooters and self-driving cars. Until she leaves, she will act as chief transformation officer, the company said.

The second-largest U.S. automaker has been undertaking a massive restructuring of its businesses that top executives previously said will cost at least $11 billion and take several years. Since Ford CEO Jim Hackett took the job in May 2017, the automaker has said it will phase out the production of almost all of its traditional passenger cars, invest in new businesses and cut jobs around the world.

Ford shares were up 1 percent Wednesday afternoon. The second-largest automaker's stock has risen 20 percent since the beginning of the year.

"In the past two years, we have made tangible progress in improving the fitness of our business, overhauled our regional strategies, created a winning product portfolio and are working to transform Ford to succeed in an era of profound change and disruption," Hackett said. "With this strong foundation in place for our auto and mobility businesses, we can now accelerate our transformation."