Ford CEO Gets Axed

Ford Motors yesterday decided to remove its CEO Mark Fields who has been in office for about three years in a bid to tackle their falling stock prices.

Reuters reports that the U.S automaker immediately named James Hackett as chief executive responding to investors' growing unease about the U.S. automaker's slumping stock price and its ability to counter threats from longtime rivals and Silicon Valley.

Ford Chairman Bill Ford Jr., whose family effectively controls the U.S. No. 2 automaker, said he wanted Hackett to speed up decision-making and cut costs, but did not offer specifics on how the new CEO should change operations.

Ford, which announced plans to cut 1,400 white-collar positions last week, is expected to look at further significant cost cuts in the next three to six months, according to company officials, speaking on condition of anonymity as the plans have not been finalized.

Hackett, 62, known as a turnaround expert who for the past year has led the Ford unit developing self-driving cars and related projects, replaces Mark Fields, 56, who spent less than three years as CEO.

Fields' abrupt dismissal caught nearly all at Ford by surprise, but concerns about the company's direction have been brewing for some time.