Jump to content
  • William Maley
    William Maley

    NADA's CEO is Concerned About Consumers Being Priced Out

      Even NADA's CEO is wondering where are the affordable vehicles

    Ask Peter Welch, the CEO of the National Automobile Dealers Association (NADA) what worries him the most, he'll admit that it is average consumers getting priced out of new cars.

    He admitted this yesterday at the Automotive News World Congress in Detroit. Welch said that the latest figures he has seen - through October of last year - reveal the average retail price of a new car climbing to a new high of $35,366. The average monthly payment is hovering at $538, and interest rates have climbed to an average of 5.76 percent (new) and 9 percent (used). Longer loan terms are becoming common, with the average length standing at 64.3 months.

    "You know, people buying $55,000 pickup trucks with $1,000-a-month payments — I've never seen it. A lot of people don't think that's sustainable," said Welch.

    "That is going to put a giant dent in the SAARs and it almost makes me wonder if at some point we're going to see another Henry Ford," offering new and more affordable vehicles.

    Aside from more people buying more expensive trucks and utility vehicles, Welch said other reasons for the increases in prices come down to new fuel economy standards and safety equipment. He sees new car prices rising towards $40,000 with $800 monthly payments.

    On a slightly positive note, NADA predicts that 16.8 million light vehicles will be sold in 2019. While down from 17.3 million in 2018, Welch notes there are some positive economic indicators "such as high employment rates, a solid GDP and a healthy economy overall."

    Source: Automotive News (Subscription Required) 

    User Feedback

    Recommended Comments



    So true, Auto companies have got to find a way to get basic starter auto's out for people in college and right out of college, otherwise we are truly headed to a cast system.

    Link to comment
    Share on other sites

    14 minutes ago, dfelt said:

    So true, Auto companies have got to find a way to get basic starter auto's out for people in college and right out of college, otherwise we are truly headed to a cast system.

    Absolutely.

    Not everybody has a family income of 100k. It isn't uncommon for younger people to start making 30k out of college with monster loans.

    24 minutes ago, William Maley said:

    The average monthly payment is hovering at $538

    Seriously? This is average? 😂

    • Upvote 2
    Link to comment
    Share on other sites

    24 minutes ago, ccap41 said:

    Absolutely.

    Not everybody has a family income of 100k. It isn't uncommon for younger people to start making 30k out of college with monster loans.

    Seriously? This is average? 😂

    Yeah...I don't know how people manage big car payments...especially with big mortgages. 

    • Upvote 1
    Link to comment
    Share on other sites

    46 minutes ago, A Horse With No Name said:

    Yeah...I don't know how people manage big car payments...especially with big mortgages. 

    Totally agree, I saved up for 3yrs to buy my Escalade and still financed 1/3 of the price. Mortgage, car loans, student loans, regular credit cards, home costs, maintenance, costs have gotten out of control in comparison to income.

    • Upvote 2
    Link to comment
    Share on other sites

    I remember a decade ago, when the politicians and the greenie folk were scolding the Detroit Big3 CEOs why do they keep on producing gas guzzling SUVs and the Detroit Big3 CEOs defended themselves by saying that that is what the consumers want.

    The politicians and the greenie folk all said bullshyte on that and forced FoMoCo, GM and Chryco. to produce smaller more economical cars...

    This is how Obamas new mileage standards came to be...

    THIS is how we got small displacement 4 bangers with turbos in our cars.

    THIS is how FoMoCo. got the name ecoboost from...

    https://www.nytimes.com/2009/05/19/business/19emissions.html

     

     

    Quote

     

    One ranking industry official said that the administration wanted to get the new mileage rules in place before General Motors made a decision on a bankruptcy filing, which could happen by the end of this month. The new rules also provide some certainty for Chrysler, which is already under bankruptcy protection, so that it can plan its future models.

    To meet the new federal standards, auto companies will have to drastically change their product lineups in a relatively short time.

    The companies have declined so far to comment on the costs involved in meeting a fleet standard of 35 miles a gallon. For starters, the automakers will probably have to sharply reduce the number of low-mileage models, like pickup trucks and large sedans.

    The president’s decision will also accelerate the development of smaller cars and engines already under way.

     

     

    As you coud see, a decade later and the consumers NEVER gave two shytes about what greenies and politicians cared for...

    • Thanks 1
    Link to comment
    Share on other sites

    I am not a fan of the new CAFE standards put in several years ago.

    The real issue is keeping up with the Joneses when it comes to everything, not just cars.  I cannot blame the president of NADA for lamenting high new car prices.  He should blame the automakers for the start of leasing cars 35 years ago in the first place.  Without car leases, the race towards higher-priced vehicles slows down.  There are also too many 60-72 month car notes out there too.  I thought that Hyundai/KIA would actually force prices down.  Instead they joined all others in their car pricing too, with slightly lower pricing.  Also, cars are not falling apart like they used to 30-45 years back, so new car replacements are less likely.  If it wasn't for used car pricing, car sales may end up being half of what they are. 

    Where is the $10,000 small crossover?  Where is the $8000 small sedan and/or hatchback?

    • Upvote 1
    Link to comment
    Share on other sites

    1 hour ago, frogger said:

    There definitely won't be any big car payment for me until the mortgage debt is under 500k lol.

     

    Mine is under 100k and I still don't want big payments. I enjoy tools, eating out, good wine, travel, good books, live hockey...and a bunch of other things.

    Even if I had Mitt Romney level money I can't see going beyond the thirties for a personal car purchase...

    Okay...maybe a CTS V or a Shelby Mustang...but only if I can pay cash for it new.

    And even then clean Shelbys and V cars are available used in the thirties all day long.

    14 minutes ago, riviera74 said:

    I am not a fan of the new CAFE standards put in several years ago.

    The real issue is keeping up with the Joneses when it comes to everything, not just cars.  I cannot blame the president of NADA for lamenting high new car prices.  He should blame the automakers for the start of leasing cars 35 years ago in the first place.  Without car leases, the race towards higher-priced vehicles slows down.  There are also too many 60-72 month car notes out there too.  I thought that Hyundai/KIA would actually force prices down.  Instead they joined all others in their car pricing too, with slightly lower pricing.  Also, cars are not falling apart like they used to 30-45 years back, so new car replacements are less likely.  If it wasn't for used car pricing, car sales may end up being half of what they are. 

    Where is the $10,000 small crossover?  Where is the $8000 small sedan and/or hatchback?

    The Ford Ecosport is as close to a ten grand crossover as you will find. Chevy used to build a very decent bare bones small suv.

    Link to comment
    Share on other sites

    Find an (online) clean Chevette and marvel at the interior. It had nothing inside, and you sweated. It was 10,000 miles away from a Cadillac/mercedes.

    Now a kia forte HAS to have a leather-wrapped steering wheel, touch screeen, full power features/A/C, active safety warning features, 17" alloy rims, etc etc etc. It even looks like a low end mercedes. How they hell could it possibly be $8000??

    Then we have the supposed wave of electrics coming, just about ALL of them priced 25% higher than their gas counterparts. Heading right toward $40K average price? Yep, I think so; electrics are supercharging that price push.

    If a brand was to offer a quirky, futuristic, Minimalist Kar with a base sound system, A/C, crank windows/manual seats, no heated seats/wheel, no screen, peppy performance, upper class MPG- it has a chance but at those levels it starts to simply compete with used stuff, better equipped. So it hopes to 'win' volume on those who are willing to do without but HAVE to have a brand new car. How many consumers is that pool comprised of?

    I blame the massive upgrading of entry level cars in features and design; it's eroded the degree of difference vs. upper crust cars, and upended the pricing range. Ultimately, a lot more model lines are going to fall- as amenities greatly overlap and size differences are minimal and everyone has 3 or 5 CUVs- the industry sags with oversaturation.

    I've advocated for this before and I still think it has major merits. Less model lines, more variants within the model line. Mainstream brands STILL have too many model lines- it's not going to last ESP if new EV brands actually start producing.

    • Upvote 3
    Link to comment
    Share on other sites

    2 hours ago, riviera74 said:

    I am not a fan of the new CAFE standards put in several years ago.

    The real issue is keeping up with the Joneses when it comes to everything, not just cars.  I cannot blame the president of NADA for lamenting high new car prices.  He should blame the automakers for the start of leasing cars 35 years ago in the first place.  Without car leases, the race towards higher-priced vehicles slows down.  There are also too many 60-72 month car notes out there too.  I thought that Hyundai/KIA would actually force prices down.  Instead they joined all others in their car pricing too, with slightly lower pricing.  Also, cars are not falling apart like they used to 30-45 years back, so new car replacements are less likely.  If it wasn't for used car pricing, car sales may end up being half of what they are. 

    Where is the $10,000 small crossover?  Where is the $8000 small sedan and/or hatchback?

    Lets add in the other HORROR of auto sales, dealerships that flip an upside down auto value and roll it into a new auto purchase just increasing the debt making it hard for the person to ever pay off the auto.

    @balthazar Gov requirement for all the nanny devices makes having a fully base auto with only say auto trans but manual windows, manual door locks, manual everything an impossible choice as many younger people feel entitled to fully loaded luxury auto's.

    Example is the neighbor that took out a line of credit to buy their son a BMW as he was a marketing graduate and needed to arrive at interviews in a proper auto representing his capabilities according to them.

    STUPID, Job interviews know nothing of what you drive and careless about it as it does not affect if you can do the job.

    I never did that for my kids and see no reason to do it at all. If you want to help with a down payment as a graduation gift, fine your money, but I see no reason for parents to buy their kids luxury auto's and go in debt. :nono:

    • Upvote 1
    Link to comment
    Share on other sites

    It’s a push toward shared and public transportation, that’s why. About control. People are dumb enough that they would but piles of chit if it was the thing to buy.....

    Having two bare bones Cavaliers over the last ten years make you realize what you can do without. I think they only real add on the cars have seem is a tom Tom GPS.....Having my Nox is like a whole new world compared to the cavs and Cobalt .

    I’d rather not have all my money wrapped up in car and house payments....

    Link to comment
    Share on other sites

    I can't believe the average new car payment is $538/mth. Here at Rancho Balthy, the highest monthly we've had over... 8 different vehicle loans is $249.  Yet I build & price different new trucks and cringe at the payment which comes in between that low-mid $500 to low $600 range.

    • Upvote 1
    Link to comment
    Share on other sites

    14 hours ago, William Maley said:

    Welch notes there are some positive economic indicators "such as high employment rates, a solid GDP and a healthy economy overall."

    Even with this reality, losing the cellar is not a good move.  GM fullsize truck prices are exorbitant in nature, for example.  They are trying to extort their loyal customers into paying for an iffy "future".  Homie don't play dat.

    • Upvote 2
    Link to comment
    Share on other sites

    Prices are getting crazy..anything under $30-35k seems to be fwd/transverse 4cyl appliances, nothing interesting.---just despair gray interior generics.

    Since I drove my last new vehicle 17 years, I'll probably be in my current for a while..but not that long..not going to keep it past 100k miles.

     I've been happy w/ my CPO experience, I can see doing that again... 

    • Upvote 1
    Link to comment
    Share on other sites

    10 hours ago, daves87rs said:

    It’s a push toward shared and public transportation, that’s why. About control. People are dumb enough that they would but piles of chit if it was the thing to buy.....

     

    But people aren't taking advantage of public transportation. Here are some quotes from a recent article from The Economist that someone posted about a week ago.

    Quote

    The American Public Transportation Association’s figures show that the number of journeys in the country as a whole has fallen in each of the past three years. In 2016-17 every kind of mass public transport became less busy: buses, subways, commuter trains and trams. New Yorkers took 2.8% fewer weekday trips on public transport and 4.2% fewer weekend trips in the 12 months to April 2018, compared with the previous year. In Chicago and Washington, DC, the decline in public-transport trips has been even steeper.

    Quote

    One explanation, which is convincing in some cities, is that public transport has deteriorated. Look at Madrid, says Richard Anderson, a transport analyst at Imperial College London. Public-transport trips fell there beginning in 2008, as you would expect in a recession-hit country where unemployment was rising. In response to the downturn, the city cut services. People noticed, and stayed away. Between 2007 and 2013 the Madrid Metro lost 19% of its customers. Service levels, perceptions and demand have all improved since then, but the Metro remains quieter than it used to be before the financial crisis.

    Quote

    Perhaps public transport has come to seem relatively dismal because people have acquired better options. Uber, Lyft and other “ride-hailing” car services are probably luring people away from trains and buses, just as they are demolishing the taxi trade. In San Francisco public transport accounts for 16% of all weekday trips, ride-hailing for 9%. People mostly seem to use Uber and Lyft to get to places well-served by mass transport (see map). One study of the city by five Californian academics asked ride-hailing customers how they would have made their most recent trip if the service did not exist. One-third replied that they would have taken public transport. In a study of Boston, 42% said the same thing.

     

    • Thanks 1
    • Upvote 1
    Link to comment
    Share on other sites

    52 minutes ago, Robert Hall said:

    Prices are getting crazy..anything under $30-35k seems to be fwd/transverse 4cyl appliances, nothing interesting.---just despair gray interior generics.

    Since I drove my last new vehicle 17 years, I'll probably be in my current for a while..but not that long..not going to keep it past 100k miles.

     I've been happy w/ my CPO experience, I can see doing that again... 

    CPO seems worthwhile to me also, it is how I bought the bug. Thinking maybe CPO Cherokee. They are priced nicely and are not bland FWD appliances.

    image.png

    tumblr_pgmmorcubg1uh4bok_1280.jpg

    tumblr_pda42tdoL71v4pyu0o1_1280.jpg

    • Upvote 1
    Link to comment
    Share on other sites

    16 hours ago, oldshurst442 said:

    I do not think its the car manufacturers that are pricing the consumers out of new cars. I think its the consumer itself that does it. 

    The consumers DEMANDED fully equipped cars over the decades and have migrated to higher priced CUVs and SUVs and 100 000 doallr work trucks to outshine their neighbors...

    Even if car manufacturers make and produce "affordable" no frill CUVs, the masses will NOT buy them or lease them.

    America has become a voracious consumer oriented society that just wants to outdo their neighbor...

     Yes, I can understand that...in a daily driver, I want the most creature comforts I can get...I couldn't imagine driving a depressing 4cyl FWD econobox w/ a despair gray interior...

     

    5 minutes ago, William Maley said:

     

    6 minutes ago, William Maley said:

    But people aren't taking advantage of public transportation. Here are some quotes from a recent article from The Economist that someone posted about a week ago.

      

      QUOTE

    Perhaps public transport has come to seem relatively dismal because people have acquired better options. Uber, Lyft and other “ride-hailing” car services are probably luring people away from trains and buses, just as they are demolishing the taxi trade. In San Francisco public transport accounts for 16% of all weekday trips, ride-hailing for 9%. People mostly seem to use Uber and Lyft to get to places well-served by mass transport (see map). One study of the city by five Californian academics asked ride-hailing customers how they would have made their most recent trip if the service did not exist. One-third replied that they would have taken public transport. In a study of Boston, 42% said the same thing.

    Public transit isn't really a realistic option here in the suburbs..there are bus lines that run into downtown Cleveland and a light rail, but nothing practical for me.  If I were working downtown or in another suburb, I'd be commuting by SUV as I've done most of my career in other cities.    I do like Uber, I use it occasionally if I don't want to deal w/ parking in some areas or want to have a few drinks at dinner.  Very convenient. 

    • Upvote 2
    Link to comment
    Share on other sites

    9 hours ago, balthazar said:

    I can't believe the average new car payment is $538/mth. Here at Rancho Balthy, the highest monthly we've had over... 8 different vehicle loans is $249.  Yet I build & price different new trucks and cringe at the payment which comes in between that low-mid $500 to low $600 range.

    I can't agree more! The most I've had was $279/month for me Escape. As long as it is under $300 I don't mind it and I still feel like I'm in control of the loan and not worried about not having the money to ever pay for it.

    My current Focus is $114/month. 

    • Upvote 1
    Link to comment
    Share on other sites

    45 minutes ago, William Maley said:

    But people aren't taking advantage of public transportation. Here are some quotes from a recent article from The Economist that someone posted about a week ago.

     

    Could this also be due to more companies embracing work from home rather than office space which is costly. 🤔

    • Upvote 1
    Link to comment
    Share on other sites

    1 minute ago, dfelt said:

    Could this also be due to more companies embracing work from home rather than office space which is costly. 🤔

    After doing it the last 18 months, I love working from home/working remotely...definitely driving much less than when I was in a cubicle in Scottsdale. 

    • Upvote 3
    Link to comment
    Share on other sites

    20 minutes ago, Robert Hall said:

    After doing it the last 18 months, I love working from home/working remotely...definitely driving much less than when I was in a cubicle in Scottsdale. 

    But then you are sitting at home working, looking out your front window and this happens...

     

    • Haha 2
    Link to comment
    Share on other sites

    4 minutes ago, A Horse With No Name said:

    But then you are sitting at home working, looking out your front window and this happens...

     

    Heh-heh..what I usually see from my cameras are deer strolling through the front and back yards..

    • Upvote 3
    Link to comment
    Share on other sites




    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.




  • Similar Content

    • By William Maley
      Jim Hackett's tenure as Ford CEO will be coming to a close on October 1st as he will retire from the position. His replacement is Jim Farley, currently Ford's Chief Operating Officer, a role he took on at the beginning of this year. In a press release, Ford said the two will be working together over the next two months on the transition. Hackett will stay on as "special advisor" for some time after.
      “I am very grateful to Jim Hackett for all he has done to modernize Ford and prepare us to compete and win in the future. Our new product vision – led by the Mustang Mach-E, new F-150 and Bronco family – is taking shape. We now have compelling plans for electric and autonomous vehicles, as well as full vehicle connectivity. And we are becoming much more nimble, which was apparent when we quickly mobilized to make life-saving equipment at the outset of the pandemic,” said Ford executive chairman, Bill Ford.
      Hackett became Ford's CEO in 2017 after the ousting of then CEO Mark Fields. His short tenure brought forth some major and controversial decisions such as Ford killing off most of their passenger car nameplates to focus on trucks and utility vehicles; spending $11 billion in electric vehicles by 2022, and the introductions of the Mach-E, 2021 F-150, and Bronco. He has also dealt with a lot frustration from various groups as The Detroit News outlines,
      Hackett admitted that his tenure did cause a fair amount of friction, but said his efforts are starting to show.
      "I aimed for moving ahead versus just moving fast. Could we aim for a longer-arc kind of reward. In this case, for the three years it takes to get products to market, you're starting to see the fruits of our labor."
      Farley, who has been with Ford since 2007, knows he has a tough road ahead. Aside from realizing the various paths laid out by Hackett, he also has to deal with the issues of the COVID-19 pandemic and hopefully launch two of Ford's key product without any issues.
      Source: Ford
      Press Release is on Page 2


      FORD ANNOUNCES JIM HACKETT TO RETIRE AS PRESIDENT AND CEO; JIM FARLEY TO SUCCEED HACKETT AS COMPANY CONTINUES TRANSFORMATION
      Jim Hackett, who has led Ford Motor Company’s transformation since 2017 as president and CEO, has elected to retire from the company Jim Farley, currently chief operating officer, becomes president and CEO of Ford effective Oct. 1. He was also elected to the Ford board of directors. He will work closely with Jim Hackett on the transition over the next two months Seamless CEO transition underscores strength of Ford’s leadership team, succession planning, and company progress over the past three years, Executive Chairman Bill Ford says DEARBORN, Mich., Aug. 4, 2020 – Ford Motor Company today announced that Jim Hackett, who has led the company’s transformation since 2017, plans to retire from the company. Jim Farley has been named the company’s new president and CEO and will join the board of directors, effective Oct. 1.
      Hackett, 65, and Farley, 58, will work together on a smooth leadership transition over the next two months.
      Under Hackett, Ford moved aggressively into the new era of smart vehicles and drove a deeper focus on customers’ wants and needs. At the same time, Ford improved the fitness of the base business – restructuring operations, invigorating the product portfolio and reducing bureaucracy.
      “I am very grateful to Jim Hackett for all he has done to modernize Ford and prepare us to compete and win in the future,” said Bill Ford, Ford’s executive chairman. “Our new product vision – led by the Mustang Mach-E, new F-150 and Bronco family – is taking shape. We now have compelling plans for electric and autonomous vehicles, as well as full vehicle connectivity. And we are becoming much more nimble, which was apparent when we quickly mobilized to make life-saving equipment at the outset of the pandemic.”
      Farley, an automotive leader with deep global experience and a successful track record, collaborated with Hackett over the past three years to develop and execute Ford’s Creating Tomorrow Together plan to transform Ford into a higher-growth, higher-margin business.
      “Jim Farley matches an innate feel for cars and customers with great instincts for the future and the new technologies that are changing our industry,” Bill Ford said. “Jim’s passion for great vehicles and his intense drive for results are well known, and I have also seen him develop into a transformational leader with the determination and foresight to help Ford thrive into the future.”
      Farley joined Ford in 2007 as global head of Marketing and Sales and went on to lead Lincoln, Ford South America, Ford of Europe and all Ford global markets in successive roles. In April 2019, Farley was chosen to lead Ford’s New Businesses, Technology & Strategy team, helping the company determine how to capitalize on powerful forces reshaping the industry – such as software platforms, connectivity, AI, automation and new forms of propulsion. He was named chief operating officer in February of this year.
      Hackett, who will continue as a special advisor to Ford through March of 2021, said the time is right to pass the mantle of leadership to Jim Farley.
      “My goal when I took on the CEO role was to prepare Ford to win in the future,” Hackett said. “The hardest thing for a proud, long-lived company to do is change to meet the challenges of the world it’s entering rather than the world it has known. I’m very proud of how far we have come in creating a modern Ford and I am very optimistic about the future.
      “I have worked side-by-side with Jim Farley for the past three years and have the greatest confidence in him as a person and a leader,” Hackett said. “He has been instrumental in crafting our new product portfolio and redesigning our businesses around the world. He is also a change agent with a deep understanding of how to lead Ford in this new era defined by smart vehicles in a smart world.”
      Said Farley: “I love Ford and I am honored by the opportunity to serve and create value for Ford’s employees, customers, dealers, communities and all of our stakeholders. Jim Hackett has laid the foundation for a really vibrant future and we have made tremendous progress in the past three years. I am so excited to work together with the whole Ford team to realize the full potential of this great company in a new era.”

      View full article
    • By William Maley
      Jim Hackett's tenure as Ford CEO will be coming to a close on October 1st as he will retire from the position. His replacement is Jim Farley, currently Ford's Chief Operating Officer, a role he took on at the beginning of this year. In a press release, Ford said the two will be working together over the next two months on the transition. Hackett will stay on as "special advisor" for some time after.
      “I am very grateful to Jim Hackett for all he has done to modernize Ford and prepare us to compete and win in the future. Our new product vision – led by the Mustang Mach-E, new F-150 and Bronco family – is taking shape. We now have compelling plans for electric and autonomous vehicles, as well as full vehicle connectivity. And we are becoming much more nimble, which was apparent when we quickly mobilized to make life-saving equipment at the outset of the pandemic,” said Ford executive chairman, Bill Ford.
      Hackett became Ford's CEO in 2017 after the ousting of then CEO Mark Fields. His short tenure brought forth some major and controversial decisions such as Ford killing off most of their passenger car nameplates to focus on trucks and utility vehicles; spending $11 billion in electric vehicles by 2022, and the introductions of the Mach-E, 2021 F-150, and Bronco. He has also dealt with a lot frustration from various groups as The Detroit News outlines,
      Hackett admitted that his tenure did cause a fair amount of friction, but said his efforts are starting to show.
      "I aimed for moving ahead versus just moving fast. Could we aim for a longer-arc kind of reward. In this case, for the three years it takes to get products to market, you're starting to see the fruits of our labor."
      Farley, who has been with Ford since 2007, knows he has a tough road ahead. Aside from realizing the various paths laid out by Hackett, he also has to deal with the issues of the COVID-19 pandemic and hopefully launch two of Ford's key product without any issues.
      Source: Ford
      Press Release is on Page 2


      FORD ANNOUNCES JIM HACKETT TO RETIRE AS PRESIDENT AND CEO; JIM FARLEY TO SUCCEED HACKETT AS COMPANY CONTINUES TRANSFORMATION
      Jim Hackett, who has led Ford Motor Company’s transformation since 2017 as president and CEO, has elected to retire from the company Jim Farley, currently chief operating officer, becomes president and CEO of Ford effective Oct. 1. He was also elected to the Ford board of directors. He will work closely with Jim Hackett on the transition over the next two months Seamless CEO transition underscores strength of Ford’s leadership team, succession planning, and company progress over the past three years, Executive Chairman Bill Ford says DEARBORN, Mich., Aug. 4, 2020 – Ford Motor Company today announced that Jim Hackett, who has led the company’s transformation since 2017, plans to retire from the company. Jim Farley has been named the company’s new president and CEO and will join the board of directors, effective Oct. 1.
      Hackett, 65, and Farley, 58, will work together on a smooth leadership transition over the next two months.
      Under Hackett, Ford moved aggressively into the new era of smart vehicles and drove a deeper focus on customers’ wants and needs. At the same time, Ford improved the fitness of the base business – restructuring operations, invigorating the product portfolio and reducing bureaucracy.
      “I am very grateful to Jim Hackett for all he has done to modernize Ford and prepare us to compete and win in the future,” said Bill Ford, Ford’s executive chairman. “Our new product vision – led by the Mustang Mach-E, new F-150 and Bronco family – is taking shape. We now have compelling plans for electric and autonomous vehicles, as well as full vehicle connectivity. And we are becoming much more nimble, which was apparent when we quickly mobilized to make life-saving equipment at the outset of the pandemic.”
      Farley, an automotive leader with deep global experience and a successful track record, collaborated with Hackett over the past three years to develop and execute Ford’s Creating Tomorrow Together plan to transform Ford into a higher-growth, higher-margin business.
      “Jim Farley matches an innate feel for cars and customers with great instincts for the future and the new technologies that are changing our industry,” Bill Ford said. “Jim’s passion for great vehicles and his intense drive for results are well known, and I have also seen him develop into a transformational leader with the determination and foresight to help Ford thrive into the future.”
      Farley joined Ford in 2007 as global head of Marketing and Sales and went on to lead Lincoln, Ford South America, Ford of Europe and all Ford global markets in successive roles. In April 2019, Farley was chosen to lead Ford’s New Businesses, Technology & Strategy team, helping the company determine how to capitalize on powerful forces reshaping the industry – such as software platforms, connectivity, AI, automation and new forms of propulsion. He was named chief operating officer in February of this year.
      Hackett, who will continue as a special advisor to Ford through March of 2021, said the time is right to pass the mantle of leadership to Jim Farley.
      “My goal when I took on the CEO role was to prepare Ford to win in the future,” Hackett said. “The hardest thing for a proud, long-lived company to do is change to meet the challenges of the world it’s entering rather than the world it has known. I’m very proud of how far we have come in creating a modern Ford and I am very optimistic about the future.
      “I have worked side-by-side with Jim Farley for the past three years and have the greatest confidence in him as a person and a leader,” Hackett said. “He has been instrumental in crafting our new product portfolio and redesigning our businesses around the world. He is also a change agent with a deep understanding of how to lead Ford in this new era defined by smart vehicles in a smart world.”
      Said Farley: “I love Ford and I am honored by the opportunity to serve and create value for Ford’s employees, customers, dealers, communities and all of our stakeholders. Jim Hackett has laid the foundation for a really vibrant future and we have made tremendous progress in the past three years. I am so excited to work together with the whole Ford team to realize the full potential of this great company in a new era.”
    • By Drew Dowdell
      The latest CEO at Nissan, Hiroto Saikawa, is out-of-office permanently as of September 16th after yet another financial scandal rocks the company.  Saikawa is the second Nissan CEO to be tainted by financial misconduct allegations. 
      Allegedly, Saikawa received improper payments with regards to the sale of Nissan stock. The payments were after the date of the sale of the stock was altered and netted Saikawa additional hundreds of thousands of dollars. Saikawa has not yet been charged with a crime. Saikawa originally said he would stay on until a replacement was found, but abruptly changed course and formally resigned today.
      The temporary replacement will be Chief Operating Officer Yasuhiro Yamauchi until a permanent replacement has been found. There are currently ten candidates for the positions and Nissan says it is considering outsiders and non-Japanese. 
       

      View full article
    • By Drew Dowdell
      The latest CEO at Nissan, Hiroto Saikawa, is out-of-office permanently as of September 16th after yet another financial scandal rocks the company.  Saikawa is the second Nissan CEO to be tainted by financial misconduct allegations. 
      Allegedly, Saikawa received improper payments with regards to the sale of Nissan stock. The payments were after the date of the sale of the stock was altered and netted Saikawa additional hundreds of thousands of dollars. Saikawa has not yet been charged with a crime. Saikawa originally said he would stay on until a replacement was found, but abruptly changed course and formally resigned today.
      The temporary replacement will be Chief Operating Officer Yasuhiro Yamauchi until a permanent replacement has been found. There are currently ten candidates for the positions and Nissan says it is considering outsiders and non-Japanese. 
       
    • By William Maley
      Saying he wants to give a fresh start for the Nissan-Renault alliance, Nissan CEO Hiroto Saikawa has announced that he'll be stepping down as CEO in the coming months. In the meantime, Saikawa will be focusing on "reforming the poor governance" that weakened the Japanese automaker before leaving.
      Saikawa has been leading the charge of ousting former Nissan Chairman and CEO Carlos Ghosn, a bit surprising since Saikawa was a protege of Ghosn. As we reported a month ago in the rumorpile , the relationship between Saikawa and Ghosn has been strained due to the two clashing on various issues. There was talk about Ghosn ousting Saikawa during a board meeting in November, but that would not happen as Ghosn would be arrested before it.
      Saikawa's reign as Nissan CEO has been problematic with a number of vehicles being recalled in Japan due to improper inspections and declining sales in the U.S.
      Source: Bloomberg

      View full article
  • Posts

  • Social Stream

  • Today's Birthdays

    1. Raybob9289
      Raybob9289
      (55 years old)
    2. Z06C6Vette
      Z06C6Vette
      (33 years old)
  • Who's Online (See full list)

    There are no registered users currently online

  • My Clubs

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...