Share prices are down = you're fired.
Although Ford has yet to make an official announcement, Forbes is reporting that Ford Motor Company is ousting CEO Mark Fields after barely three years on the job. He will be replaced by Ford's head of Smart Mobility subsidy James Hackett. Other top executives will also take on larger roles in the wake of Fields' firing, such as Jim Farley, currently president of Ford of Europe, the Middle East and Africa. Why is Ford firing Fields, exactly?
Turns out Executive Chairman Bill Ford and the board of directors have lost confidence in Fields, mainly because Ford has lost market share and hasn't been able to convince investors to buy its stock. Ford shares are reportedly down 40 percent under Fields' leadership. That's interesting considering the automaker recently reported solid profits from its F-Series pickup trucks, but those profits alone aren't good enough in regards to the big picture. Although Fields had been investing billions in smart mobility and autonomous technologies, the bottom line is that profits suffered under his watch.
Fields' critics also point out that competitors, mainly GM and Tesla, have moved faster and more successfully into the EV market segment. As it stands, Ford does not have a competitor to the new Chevrolet Bolt or the upcoming Tesla Model 3. Ford will announce more details about what to expect next later today.