Ford Names New CEO

Jim Hackett replaces Mark Fields as company's leader

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Ford Motor Co. (F, Financial)Â announced yesterday it has appointed a new president and CEO. Jim Hackett will take the leadership reins from Mark Fields, who is retiring.

Hackett has a history of being a transformational leader as he took charge of Steelcase Inc.'s (SCS, Financial) turnaround, making it one of the world's leading office furniture manufacturers. Having served on Ford's board since 2013, Hackett has led Ford Smart Mobility since March 2016.Â

Fields, who led the company for three years, has been criticized for the automaker's declining profits and slumping stock price. There were also concerns about falling behind in the self-driving cars race. Along with Executive Chairman Bill Ford, Hackett will focus on sharpening the company's operations, modernizing the business and transforming the company to meet future objectives.Â

Ford praised Hackett's ability to lead the company's transformation toward the future, saying he was the right person for the job.Â

“He’s a true visionary who brings a unique, human-centered leadership approach to our culture, products and services that will unlock the potential of our people and our business,” Ford said.

The company also appointed three individuals to new roles under Hackett. Jim Farley will serve as executive vice president and president of global markets. Joe Hinrichs was appointed executive vice president and president of global operations. Marcy Klevorn will be executive vice president and president of mobility.Â

In addition, Mark Truby was appointed vice president of communications and elected as a company officer. Paul Ballew will serve as vice president and chief data and analytics officer.

Ford shares are currently trading around $11.10, up 23 cents or 2.12% from the previous trading day, with a price-sales (P/S) ratio of 0.29, a price-earnings (P/E) ratio of 11.82 and a price-book (P/B) ratio of 1.44.

Analysts estimate an average target price of $12.90 per share, which represents a 16.2% upside from the current share price. Ford distributes an annual dividend of 60 cents through quarterly payments of 15 cents, leading to a dividend yield of 5.52% based on the current market value.Â

The stock is uptrending and has lost approximately 8.5% year to date.

Hackett expressed his excitement for leading Ford into the future.

"I have developed a deep appreciation for Ford’s people, values and heritage during the past four years as part of the company and look forward to working together with everyone tied to Ford during this transformative period," Hackett said.

Disclosure: I have no positions in Ford Motor Co.

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