AutoBeta(AutoBeta.net)02/08 Report--

Ford Motor Company reported disappointing results a few days ago, and net profit plunged 99 per cent to $47 million, or just 330 million yuan, in 2019. On January 8th Ford announced changes to its senior management team, including the appointment of a new chief operating officer.

Ford announced that Jim Farley has been appointed chief operating officer of Ford Motor Company, responsible for Ford's global marketing and automotive operations, Ford's smart mobile travel and self-driving operations, and reports to Ford President and CEO Jim Hackett.

Jim ∙ Farley, 57, joined Ford in 2007 as president of global marketing and then in charge of the Lincoln brand and Ford's operations in South America, Europe and Ford's global markets. he has been president of Ford's emerging businesses, technology and company strategy since April last year.

Ford said that the restructuring of the management team will further accelerate the company's rapid transformation to a high-growth and high-profit business area, taking advantage of the business opportunity of connecting cars and services through the Intelligent Network. Ford is constantly committed to global business restructuring, reshaping the product lineup and improving business adaptability to improve its core business foundation. The arrival of Jim ∙ Farley will lead Ford to strengthen its car business and ensure that it achieves its target of 8 per cent EBIT for its global operations. The appointment will take effect on March 1.

Ford delivered a disappointing earnings report this past 2019, mainly affected by new labor agreements, setbacks in sales of a number of products and poor performance in its core markets.

In 2019, Ford's operating income was $155.9 billion, down 3 per cent from a year earlier; full-year profit before interest and tax was $6.4 billion, down from $7 billion in 2018; and net profit was only $47 million, down from $3.7 billion in 2018, a decline of 98.7 per cent.

In North America, Ford's $2.2 billion employee retirement plan and $600m in subsidy costs from a new labour agreement with the UAW have further cut profits in North America.

In addition, China is Ford's second largest single market, and the continued decline in sales has led to performance losses, and the weak market has further dragged down Ford's global performance. In the Chinese market, Ford lost $771 million in 2019, down sharply from a loss of $1.5 billion in 2018. Ford's sales in China fell 26.1% year-on-year to 567854 vehicles in 2019, including sales of Changan Ford, Ford-branded imported cars, Jiangling Motor, Lincoln Brand and other businesses.

Ford has failed to produce a satisfactory answer for both global and regional market performance, especially in the Chinese market, where continued market weakness and performance losses have seriously frustrated Ford Motor Company's performance. Jim Farley will be responsible for Ford's global market and automotive operations, including product research and development, procurement, global product line management, manufacturing and labor relations, marketing, sales and service, quality and new model release, etc., he will also undertake the task of saving Ford.

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