Ford board of directors decided to change their CEO pretty abruptly recently, when Mark Fields was dismissed.
The Future of Auto Industry
https://en.wikipedia.org/wiki/File:Jim_Hackett.jpg
There are three major technological changes the car industry is looking at right now: electric power, autonomy, and ride-hailing. The only question worth asking here is whether they pose any sort of existential threat to the other car companies around or whether they will be able to get by with modest changes to their core business.
Choosing a CEO from the advanced technology group of Ford may seem like they are worried about disruption. This move is out of character and is more of a symbol as far as emphasizing how important these technologies are going to be if the future is concerned. And when is the future not concerned?
The Question
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The only question here is whether the car industry is finally going to fall victim to companies like Uber, Tesla, and Google. History suggests that even well-managed companies have trouble coping with such threats. But this could be unlikely. Take Tesla for instance, their cars are highly expensive so they not really a threat to Ford.
But what company can operate without profiting from its endeavors? Not too many businesses want to be like Facebook was in its first few years where it may or may not have been profitable.
Many people in the automobile business do not believe car companies are currently facing the same threat that record labels and photography companies faced decades ago. Tech companies are going to have trouble producing cars on a large scale like Ford does.
There is some truth to this view too. Google had designed a self-driving car a few years ago without a steering wheel or pedals. But, Google recently decided it was easier to outsource the design to Chrysler instead of manufacturing them in-house.
The Difference
http://www.picserver.org/f/future.html
So it may not make much of a difference if Ford makes self-driving software of its own. There are many companies working on such software at the moment. But the problem is that software is sort of a winner-take-all market. Most profits and power will be in the hands of the dominant maker leaving the rest with scraps.
This is true since experts believe ride-hailing will be a dominant business model in the age of self-driving. Uber customers don't care about the car model which picks them up. If that's the way people will travel in the future, car companies could lose relationships with their customers along with the profits associated with them.
Fields didn't really have a clear strategy in place as far as its core car manufacturing business is concerned. The company has slipped up on numerous occasions in the last few years when it comes to its core business. The day-to-day operation of their business has suffered as well because of this.
All of this points to the idea that hiring Hackett doesn't signal any sort of dramatic change in the company's strategy. But, now is the time for companies to recognize what's going on in manufacturing, especially when people may shift to SUVs and crossovers in the near future.
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