Ford Motor Co. is expecting the transition from CEO and President Alan Mulally to Mark Fields to be the best in the company’s famed history. Fields, chief operating officer, will replace Mulally starting July 1. The 53-year-old executive will be the ninth CEO in the company’s more than 110-year history. No one, according to officials, will succeed Fields as COO.Watch video
DEARBORN, MI- Ford Motor Co. is expecting the transition from CEO and President Alan Mulally to Mark Fields to be the best in the company’s famed history.
“In many ways, this is really a historic day,” said Ford Executive Chairman Bill Ford during an event Thursday morning at the company’s headquarters in Dearborn, Mich. “It really fulfills a dream that I’ve had, which is, if you look back at the history of our company, we’ve had very few, maybe never, have we had a planned and smooth transition, all the way back to my great-grandfather.”
Fields, chief operating officer, will replace Mulally starting July 1. The 53-year-old executive will be the ninth CEO in the company’s more than 110-year history. No one, according to officials, will succeed Fields as COO.
Ford has spent years building its succession plan for the retirement of Mulally, who joined Ford from airline manufacturer Boeing Co. in 2006. He is credited for implementing its successful “One Ford” plan and steering the Dearborn-based automaker away from bankruptcy in the late-2000s by mortgaging Ford assets, including its blue oval, for a $23.5 billion loan.
Mulally’s retirement will come roughly six months earlier than anticipated. Since late-2012, the 68-year-old has said he planned to stay with Ford through at least 2014. Ford says the transition is earlier than previously anticipated, following Mulally’s recommendation to accelerate the timetable based on the readiness of Ford’s leadership team.
Ford Motor Company President and CEO Alan Mulally, from left, Executive Chairman Bill Ford Jr., and Chief Operating Officer Mark Fields appear during a news conference in Dearborn, Mich., Thursday, May 1, 2014. Ford announced CEO Alan Mulally will retire July 1 and be replaced by Fields. (AP Photo/Paul Sancya)“We are absolutely, fully confident that the team is absolutely ready,” Mulally said. “This is the right time to do it. The strategy’s in place. The plan’s in place. The team’s in place … Everything’s in place for the future.”
Mulally, who also will retire from the company’s board of directors, said the “last step” in Ford’s intricate succession plan came in November 2012, when Ford announced several executive leadership changes, including promoting Fields to COO starting Dec. 1 of that year. Since then, analysts have heavily speculated Fields as being the favorite to succeed Mulally as CEO.
Fields said he plans to continue the “One Ford” plan and positive culture Mulally has instilled in the company.
“We’re all like snowflakes; we’re all a little different. I bring a little bit different management style than Alan. But nonetheless, what we share, and what I share is this burning desire to continue this culture of working together and positive leadership.”
Fields added he doesn’t expect the company to “skip a beat” during the transition.
Unlike many CEO changes, the announcement has had little impact on the company’s stock price. As of 11 a.m. Thursday, about two hours after the announcement, Ford shares [NYSE: F] has remained around its opening price of $16.15.
Ford Motor Company Chief Operating Officer Mark Fields speaks during a news conference in Dearborn, Mich., Thursday, May 1, 2014. Ford announced Fields will replace CEO Alan Mulally, who is retiring July 1. (AP Photo/Paul Sancya)During the Thursday announcement, all three executives -- Bill Ford, Mulally and Fields -- shared the stage to talk about how the company got to where it is under Mulally, and the confidence they have with it under Fields. Many times during the talks, there was laughing, joking and standing ovations from the hundreds of employees in attendance.
"This is not only the most exciting time in the auto industry ... it is the most exciting time to be at Ford," said Fields, before thanking Mulally and Bill Ford for their leadership.
Speculation surrounding Mulally’s exodus from Ford has been circulating for years. It escalated last year when Microsoft Corp. was reportedly interested in Mulally as its next CEO.
Fields’ role as COO has included leading the company’s weekly Business Plan Review meeting, which Mulally established to track the progress of the One Ford plan and to monitor the global business and competitive environment. The Thursday meetings are credited with driving a reliable and transparent process for running Ford’s global operations and enabling Ford’s senior leadership to work closely together and act decisively on its plan. "Every job the company has ever asked Mark to do, he's done willingly, and he's done very well," said Bill Ford, calling Fields "a battle-tested executive."
Before serving as COO, Fields served as executive vice president and president – The Americas since October 2005. There, he led the transformation of Ford’s North American business – turning it from record losses several years ago to record profits in each of the last four years. Earlier, Fields guided the product-led transformation of Ford’s European operations and formerly held European luxury brands, as well as the relaunch of Ford’s independent operations in Argentina and a major restructuring and product renaissance at Mazda.
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