Farley was was hired away from Toyota by then-CEO Alan Mulally in November of 2007 to run Ford's marketing operations.
The 65-year-old Hackett took over for the ousted Mark Fields in May of 2017.
Almost immediately he began reviewing Ford's management structure and flattened the organization so it could move faster. But his often lengthy directives confused employees who weren't clear on where the company was headed.
Hackett, a retired Steelcase CEO who had run Ford's mobility efforts, will stay on as an adviser to Farley through March of 2021.
Ford Executive Chairman Bill Ford, the great grandson of company founder Henry Ford, praised Hackett for modernising the company and reducing bureaucracy.
We now have compelling plans for electric and autonomous vehicles, as well as full vehicle connectivity. And we are becoming much more nimble, Ford said.
He cited Ford's quick shift to make ventilators, face shields and other protective equipment to help alleviate shortages at the start of the coronavirus pandemic.
Just after the change was announced Tuesday morning, Ford shares rose 2% to $6.84 in premarket trading.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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