Ford CEO Jim Hackett: “We need smart vehicles for a smart world”

Hackett’s past five months have brought a modest stock upturn but, as the pitiless denizens of Wall Street keep observing, no greater than the recent upswing of the indices themselves. America’s markets are unashamedly short-termist and Hackett knows he has a big job ahead convincing them (happy as they are to make an exception of Tesla) that future tech at Ford can be a money-spinner. 

For a guru of change, Hackett’s career at first glance looks curiously sedentary. After a few years with Procter & Gamble after college, he spent 35 years with an office furniture group, Steelcase, and taking directorships with banks and insurance companies. Should someone who always worked for the same company, and in the same place, be lecturing us on modern corporate development? 

Well, yes, as it happens. The filing cabinet business went through a eureka moment when Hackett – as its 39-year-old CEO – led a team that ‘discovered’ smart working, and promptly started a revolution in office design. That achievement cast deep-thinking Hackett into a change guru and put him in daily touch with other leading American design thinkers. It also brought him to Ford in 2015 as chief of a new smart mobility division, which is why he was ready when Fields faltered. 

Talking vehicle connectivity, Hackett is instantly impressive. “We need smart vehicles for a smart world,” he says, “but cities are not ready. Their streets were never wired when they were built and nobody’s about to start digging them up now. Connectivity will provide answers.” 

Progress must be continual, says Hackett, displaying his penchant for deep thinking on corporate behaviour by describing how market-leading companies have eventually failed by sticking too long to the source of their original advantage. “Take Pony Express,” he says. “I’ll bet their CEO would not have had a good board meeting the day he suggested they should ditch ponies. But it had to happen.” 

Vital question: does this mean Ford has initially to stop making cars as we know them? (I’m a little concerned, having articulated my love for the Ford Mustang.) “Good Lord, no,” says Hackett, aghast. “You go right ahead and get your Mustang. What we’re finding is that people’s enthusiasm for their cars doesn’t decline when the method of propulsion changes. That makes the whole thing maintainable.” 

Still, I persist, surely there’s a huge job ahead to make people want these new-theory cars. You’ve got to take the public with you. Hackett promptly agrees, with provisos. “The technology must adapt itself to the requirements of the market,” he says, “and early iterations didn’t do that well enough. But the basic principle is to build trust. To make it clear to people that they can commit to Ford. Back in 2008, we earned their trust in ways they probably didn’t expect.” 

Hackett on: 

When autonomous cars will arrive:

“It will be a progressive thing, just like computers. If you’re thinking about a vehicle that can drive anywhere, in any circumstance, it’ll arrive much later than 2021. Every manufacturer will tell you that.” 

How autonomous cars will work 

“It’s not going to replace the station wagon. The AV [autonomous vehicle] will do things the station wagon can’t – not just drive itself, but other things.” Adapting technology to customers’ needs “The technology has to shape itself around the market’s needs. Customers don’t want to rise upside down just because it’s possible...” 

Leadership in the tech game 

“We don’t intend to cede the future to anybody.” 

Ford’s next technology steps 

“I have some things that are going to be coming out in the autumn. I’m a huge proponent of setting a healthy balance between thinking and doing.”