Ford Motor Company (NYSE:F) is somewhat stuck in a product drought and there are no tangible signs of change until 2019. However, there are speculations that the company’s new chief executive officer Jim Hackett is likely to bring a solution to the frustrations of the world’s oldest automaker.
For one year, the 62-year-old former office furniture executive has been running Ford’s autonomous car and ride-sharing unit. He will not be expected to fit and grow in the shoes of exiting CEO Mark Fields who was axed after a major restructuring in the company.
Transformation of the company into meeting tomorrow’s challenges
The company has been on a downward trend in its sales and profits since Mr. Fields took up his role in 2014. There has also been a big slide in the share price over the last year and according to the company’s board, he was not giving a proper accountability of the company’s preparation for the future.
These are some of the situations that Hackett will have to undo in his roles of transforming the company. Nonetheless, some of his immediate concerns seem to be inclined towards stopping a skid in North American sales. He has also expressed a strong interest in fending off a market share grab by resurgent archrival General Motors Co.
However, Kathryn Segovia who worked with Hackett at Steelcase Inc. (NYSE:SCS) in 2012 says, “Ford has largely seen itself as an automobile company for so long. What Jim is really great at doing is reframing a company around a mission, around a need that people have.”
He is one of the real original thinkers. But he has a long way to go
Hackett is one of the visionaries of Steelcase who were tasked with designing principles, which helped in transforming the company. Nonetheless, while he may have been a real and original thinker, he has a long way to go in putting Ford back to its shape.
He has to confront a cross-town rival, which is largely free of debt. Ford and General Motors Company (NYSE:GM), the No. 1 U.S. automaker, will be battling each other in the truck and SUV segments, which bring in massive profits for them. Nonetheless, he gave a new face to Steelcase, thus he is turnaround specialist thus he is capable of re-imaging Ford’s business.
Meanwhile, Ford’s stock closed at $10.96 a fall of $0.09 or 0.81%.