Ford fires CEO Mark Fields

Ford has shocked the car industry by announcing its current chief executive, Mark Fields, is leaving the company.

Fields, who announced his decision to retire aged just 56, will be replaced by current head of Ford Smart Mobility, James P Hackett.

It's been widely reportedly that Fields' decision to leave followed a loss of confidence in his leadership by Ford’s Executive Chairman, Bill Ford, and the rest of the car maker’s board.

Fields took on the CEO back in mid-2014 when he replaced Alan Mulally.

This year the US car making giant expects to generate US9 billion pre-tax profit (A$11.8 billion) but, despite this, Ford's share price has slipped 40 per cent under the ousted boss' regime.

Ford's new CEO Hackett, 62, is former chief executive of Steelcase, a large US furniture company that he worked for more than three decades.

Until the announcement, Hackett was the newly appointed chairman of the car maker's autonomous division that was formed in March 2016.

Following the announcement of Fields departure and Hackett's huge promotion, Bill Ford compared his car maker's new CEO to Mulally who averted disaster in the last economic meltdown.

“Alan captured the hearts and minds of our employees and made them feel not only could we win but that we would win,” Ford told reporters. “I think that’s something that you’ll see very much with Jim. Jim is a cultural change agent."

In the future Ford said his car maker would be faster at making decisions and less overwhelmed with bureaucracy and hierarchy with Hackett at the helm.

Commenting on his promotion Hackett said: “I know that that can be better and we can build enthusiasm for Ford.”

As well as the top job, sweeping management changes also saw a raft of other promotions that included appointing the current head of Ford Europe, Jim Farley, to vice president and president of global markets.

Following the announcement of Fields' retirement, Ford shares rallied in early trading on the New York stock market.