General Motors’ cross-town rival, Ford Motor Company, underwent a shakeup overnight. Ford Authority reports the Blue Oval has ousted chief executive officer, Mark Fields.
Fields, who replaced CEO Alan Mullay, has been under fire for some time, following dismal stock performance and dwindling passenger car sales. Fields stepped into the leadership role nearly three years ago on July 1, 2014.
He will be replaced by Jim Hackett, who is currently leading Ford’s Smart Mobility subsidiary. He is also a 30-year veteran of Steelcase, where he was lauded for turning around operations and the company’s approach to the business.
Ford’s board of directors reportedly lost confidence in Field’s ability to lead the automaker into the future and pointed to a lack of an encompassing vision for the automaker’s future. Despite record sales from the Ford F-150, directors noted Ford’s eroding business in other segments.
Ford is reportedly on track to post a $9 billion profit before taxes this year—a considerable drop 2016’s $10.4 billion profit. Ford sales are down 5.6 percent through April of this year.
Like General Motors, Ford has been working to become a leaner automaker. The Blue Oval recently announced a 10 percent reduction in its salaried workforce—Field’s final call as chief executive. The announcement did little to excite Ford investors.