Ford Motor Company NYSE: F to Replace CEO Mark Fields, Stock Rises 2%

Ford Motor Company NYSE: F called for a news conference at 9:45 A.M. ET on Monday ahead of rumors that the struggling company will replace CEO Mark Fields. Representatives have declined to discuss the matter, but reports indicate that James Hackett, the company’s head of mobility, will replace Fields as CEO.

The replacement comes as the company remains under constant pressure from investors  to improve stock performance and the company’s prospects.

Ford Motor Company NYSE: F

Ford announced that the company will cut 1,400 jobs in North America to help cut costs and improve profit margins. The automaker is under growing pressure to increase stock value after a 37% decline since Fields took over the company three years ago.

Ford Motor Company NYSE: F Has Been Struggling

 

Ford Motor Company NYSE: F’s struggling stock has fallen behind their main competitor General Motors (GM), whose stock has fallen 13% during the same time span. The automotive industry is slowing down following record sales last year.

Field’s turnaround of Ford resulted in $10.4 billion in pretax earnings in 2016 and an investment in Argo AI, a tech startup that the company plans to invest $1 billion in over the next five years. Field’s optimistic plans to compete against technology companies and push the company into the future of autonomous vehicles fell short after weak first quarter sales in 2017.

The automaker’s lower profit forecast for the year and emerging opportunity costs resulted in investors calling for a change at the company’s helm.

Ford’s first quarter profits fell $1.5 billion for the company’s automotive segment, losing market share to General Motors in the United States. Fields was the focus of criticism during the company’s shareholder meeting due to subpar financial results.

The company’s car sales are down 25% this year, with a steep decline in small and midsize car sales.

Safety recalls have plagued the automaker. Red flags have been raised among consumers and shareholders over the automakers overall vehicle quality.