Mark Fields, the CEO of Ford Motor Company, the second largest vehicle maker in the United States, was discharged after an operation among the top management level. The low profitability over the last three years, a 40 percent drop in stock markets, and the brand value that goes under Tesla have been shown as the reasons of this dismissal.
After retirement of Alan Mullally in 2014 Mark Fields took up the position. Ford’s stock had lost about 40 per cent since 2014 when CEO Fields came in. Ford is replacing Fields with Jim Hackett who has been responsible for non-driver cars. This assignment gives a concrete signal about Ford’s focal point in the coming period.
Ford had a 25 percent drop in car sales in 2017 which caused the dismissal of 1,400 employees. After this dismissal, operation among the top management level started. In fact decline in the sales was not the only reason affecting the Ford’s shareholders to fire Fields. The company’s market share, earnings and decline in share prices are among the factors that set Fields’ end.
The fact that the company lags behind its competitors in technological development areas, which are vital for the automotive sector today, can also be shown in the reasons that lead to such kind of a change. For example, there are still three years ahead of Ford to drive the long-range electric vehicle to the market. In addition, Ford is also behind the competition on driverless automotive technology.
Another important reason for the dismissal of Fields is seen as Elon Musk, the crazy founder of Tesla. Because Tesla’s total value reached 47.8 billion dollars and Ford’s value remained at 45.1 billion dollars. But the interesting part is that Tesla sold less than 80,000 cars in 2016 while sold 6.7 million vehicles in the same year. It is really unbelievable to see Tesla passing Ford in market value despite having less and less sales than Ford.
The fact that Ford, which produces automobiles for 100 years, has lagged behind a company that was founded only 13 years ago and has 4 models in total, has also confused analysts. Elon Musk is growing his targets. Musk says Tesla can produce 500 thousand cars in 2018.