Ford’s stock fell 2% on Friday following the company announcing a management shakeup to deal with its poor launch of the new Explorer SUV. The company reported a $1.7 billion loss on Tuesday, mostly tied with the defects that plagued the new Explorers. The vehicles came off the assembly line with multiple problems and had to be shipped to a Detroit-area factory for repairs, delaying deliveries to customers and costing the company sales.
The company also had other higher warranty costs during the year, especially for a glitch-prone six-speed automatic transmission in the Ford Focus compact car. In response, Ford said it would shake up management in the wake of the Explorer’s troubles. The Dearborn, Michigan-based company says automotive President Joe Hinrichs will retire effective March 1. Jim Farley, president of new business and strategy, will become chief operating officer in charge of global markets and automotive operations.