James Hackett spent the last year plotting Ford Motor Co’s long-term self-driving car strategy. In his first week as chief executive, he has more immediate concerns: stopping a skid in North American sales and fending off a market share grab by resurgent archrival General Motors Co.
DETROIT James Hackett spent the last year plotting Ford Motor Co’s long-term self-driving car strategy. In his first week as chief executive, he has more immediate concerns: stopping a skid in North American sales and fending off a market share grab by resurgent archrival General Motors Co.
The U.S. No. 2 automaker is stuck in a product drought that shows no signs of easing until 2019, according to two sources who track Detroit’s launch plans. Given the auto industry’s long product cycles, it is not clear what Hackett can do immediately to get Ford out of its predicament, which can be traced back to decisions by former CEOs.
Hackett was tapped to run the company’s autonomous car and ride-sharing unit a year ago. On Monday he unexpectedly found himself at the helm of the whole company as Ford axed CEO Mark Fields.
He now has to face up to a void of new vehicles, partly caused by former CEO Alan Mulally, who focused much of the company’s resources on an expensive 2014 redesign of Ford’s crown jewel, the F-Series pickup.
That safeguarded America’s longtime best-selling vehicle, but it prevented Ford from developing other hits. Given that it typically takes three to four years for a new or redesigned vehicle to get into production, the full effect of Mulally’s narrow focus is now being felt.
Mulally also gambled heavily on making an expensive shift to aluminum from steel to lighten up trucks and make them more fuel efficient, a bet that looks questionable in retrospect, as gas prices have remained far lower than anyone expected.
If Fields had immediately started pulling forward product launches when he took over from Mulally in July 2014, the first of those would likely reach the market in the autumn of 2018 at the earliest. As it is, Ford must wait until early 2019 for its first big slug of new models to hit showrooms.
There is not much Hackett can do about that. Any product moves he makes today would not likely show up in the market before 2021.
“Ford needs to move faster,” said RBC auto analyst Joseph Spak.
Hackett, only three days into his new job, has not yet laid out his plans for Ford publicly.
Ford spokesman Michael Levine side-stepped questions of a short-term product drought. “We’re bullish on our strong pipeline of all-new cars, trucks and SUVs coming in the next five years,” he told Reuters. “What’s more, the vehicles that we are launching … will continue to deliver high transaction prices and good business.”
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