Sept 12 (Askume) – Ford Motor Co (FN) said on Thursday Ted Kanis, the head of its highly profitable commercial vehicles business unit, will retire at the end of this month from his last role at the Detroit automaker after 35 years.
He leads Ford Pro’s launch of gasoline and electric vehicles in 2021, making it a high-margin business. Ford shares fell about 0.8%.
His resignation comes as Ford struggles with quality issues and losses in its electric vehicle business , underscoring the importance of its lucrative gasoline-powered pickup trucks and SUVs as well as its Ford Pro business.
“Given that Jim Farley has been CEO for nearly four years, we believe management is facing increasing pressure from shareholders to achieve sustained financial improvement.
“Ford’s second-quarter results were particularly disappointing, and we think some investors are losing patience with the story.”
Its commercial vehicle business, which Chief Executive Jim Farley called the automaker’s “secret sauce,” posted an operating profit of $2.6 billion in the second quarter, with a profit margin of 15%.
“Ted’s energy and passion for customers have been instrumental in building Ford Pro into a company that will achieve $70 billion in revenue this year, which will make it a Fortune 100 company in its own right,” Farley said.
He said the Ford Customer Service Division (FCSD), which Canis leads, is seeking more revenue than the estimated $100 billion from maintenance, repairs, parts and other services.
“It’s surprising, but there are a lot of changes at Ford, and those changes come with this segment. In my opinion, this is a huge loss,” said Wedbush Securities analyst Dan Ives.
Kanis is also part of the team that helped develop the Mustang Mach-E and the F-150 Lightning electric pickup truck.
Andrew Frick, president of the Blue division, which makes gasoline-powered vehicles, will lead the Pro division on an interim basis while the company searches for a replacement.
Daniel Justo, Ford Blue’s chief financial officer, will serve as vice president of FCSD beginning Oct. 1 and will report to Frick.
Ford’s statement did not provide any details about Kanis’ future plans or age. His LinkedIn profile says he graduated from college in 1987.
