Ford's Chief Financial Officer (CFO), John Lawler and Linda Zhang, chief engineer of the company's All Electric F-150 Lightning, attend the opening ceremony at the New York Stock Exchange (NYSE) in New York City, New York, USA , April 28, 2022.
Brendan Mcdermid | Reuters
Ford engine was named the electric vehicle startup's former chief financial officer on Friday Bright replacing the current CFO, who is being promoted to more closely oversee the company's ongoing turnaround plan.
Ex-Lucid CEO Sherry House will be the first to join Ford as financial vice president in early June. She will transition to the role of CFO in early 2025, the company said a press release.
In the meantime, current CFO John Lawler will continue in his role and expand his role to vice chairman. Lawler has served as CFO since October 2020, during which he helped build the company's Ford+ turnaround plan, aimed at making Ford more efficient and profitable as the company continues to expand its current operations and invest billions in electric vehicles.
Ford has faced high warranty costs for years, including $1.9 billion by 2023. Last year, the company said it faces a $7 billion to $8 billion annual disadvantage compared to traditional rivals due to manufacturing costs, quality issues and other operational inefficiencies .
The move comes at a time when Ford is increasing its focus on electric vehicles. The automaker's U.S. sales rose 10.5% in February 2024 compared to February 2023, thanks to increases in sales of all-hybrid and all-electric vehicles. The results include an 81% jump in fully electric vehicles.
“Make no mistake: EVs are coming, EVs are part of the future,” Lawler had told CNBC in February.
However, the unit is not yet profitable. As part of its 2024 guidance, first released in February, Ford said it expected its EV business to lose between $5 billion and $5.5 billion this year.
House was CFO at Lucid Motors for almost three years until last December. At that time, the company went public, began manufacturing and supplying its luxury electric cars, and opened factories in the US and Saudi Arabia. She has also held roles at Alphabet-backed autonomous driving technology company Waymo and General engines.
“Sherry adds an important leadership dimension to Ford as we urgently look to build a profitable EV business, generate new and recurring revenue streams and create a more dynamic and resilient company,” said Jim Farley, Ford president and CEO, in the press release .
Ford reorganized its business in 2022, splitting electric vehicles and older cars into two separate units to streamline its growing EV business and maximize profits.
