Ford shakeup after losses

Ford reveals major executive changes days after it reported a US$1.67 billion operating loss during the fourth quarter, released unimpressive 2020 guidance, and had a nearly double-digit drop in shares in after-hours trade.

President Joe Hinrichs is retiring after 19 years with Jim Farley named chief operating officer reporting to chief executive Jim Hackett following Ford’s poor performance, the changes applying from March 1, overseas media report.

Farley will be responsible for all global markets and automotive operations, Ford Smart Mobility and autonomous vehicles, the company says.

Ford booked a net loss of US$1.67 billion for the quarter which it attributed to higher contributions to its pension plans overseas. Revenue fell 5%, to US$39.7 billion, The Wall Street Journal reports.

That’s in contrast to Tesla’s

strong fourth quarter.

Ford forecast operating profit this year of US$5.6 billion to US$6.6 billion, compared with US$6.38 billion last year.

Last year, Ford upset US president Donald Trump by laying off thousands of workers as it ended production for its sedans in North America to focus on the more popular utes and SUVs.

The WSJ says 2020 will be crucial for Ford in showing better results.

Under Hackett, Ford has pursued futuristic initiatives, such as testing driverless pizza delivery and an all-electric SUV version of the Mustang, it reports.

But the second half of Ford’s year was hit with higher warranty costs and a troubled rollout of a redesigned version of its Explorer SUV.

Ford has had difficulties in China too, sales falling by more than half since 2016 but halved its loss there through cost cutting. It also had a reduced loss for the year in Europe.

North American business remains healthy for Ford.