New Ford CEO Farley will wrestle with virus, restructuring

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New Ford CEO Farley will wrestle with virus, restructuring
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Ford Motor Co said on Tuesday acting chief operating officer Jim Farley will take over as chief executive officer effective Oct. 1.

REUTERS: Ford named Jim Farley its new chief executive on Tuesday as the No 2 US automaker wrestled with restructuring its global operations amid the ravages of the coronavirus crisis that has forced it to take on large amounts of debt.

Ford shares were up 1.4 per cent in late morning trading, after earlier rising 3 per cent on news of Farley's succession as CEO. Hackett’s relationship with Wall Street has, at times, been strained. Analysts have expressed frustration at his preference for often-impenetrable corporate language, instead of clear updates on where Ford was heading, and a perceived lack of urgency in restructuring the automaker.

Executives insisted that although the company had dramatically scaled back the amount it will spend on a global restructuring of its business, that overhaul had not stalled.The No 2 US automaker also faces slumping demand in China, its second-largest market. Hackett’s total compensation, including stock options, fell to US$17.4 million in 2019 from US$17.8 million in 2018. He will cease to have access to private aircraft for personal travel effective Oct 1.

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