Ford is expected to replace its chief executive officer Mark Fields, according to a report by the New York Times. Fields was reportedly ousted following Ford’s poor global sales.
Since he started in the job in 2014, sales have decreased by seven percent in the US and 11 percent in Europe. The resulting shrink in profits has triggered a decrease in share prices by close to 40 percent in just over two years.
At this stage the news is unconfirmed by Ford, with a spokesman telling our sister publication Autocar UK that the company “won’t comment on speculation” and that it is sticking to its “current plan”.
However, Autocar UK’s sources predict an announcement to be made when the New York Stock Exchange opens later today. They also expect Ford's autonomous vehicles division boss, James Hackett, to take the vacant lead role at Ford.
The leadership switch comes one week after Ford announced plans to reduce its Asian and North American workforces by 10 percent; it has 1,01,000 and 23,000 employees in each region, respectively.
A source close to the plan said that the cuts, which are part of a $3 billion (approximately Rs 19,377 crore) cost-cutting scheme, is targeted directly at addressing profit and share price issues.