Ford's current CEO Mark Field, 56, will retire from Ford, where he has spent the past 28 years.
He will be replaced by Jim Hackett, former CEO of Steelcase, who most recently served as Ford Smart Mobility's chairman, and was a member of Ford's board between 2013 and 2016.
In a statement, Ford's executive chairman Bill Ford said that Hackett "is the right CEO to lead Ford during this transformative period for the auto industry and the broader mobility space". "Field's strong leadership was critical to our North American restructuring, our turnaround at the end of the last decade, and our record profits in the past two years," he added.
The change follows a drop in Ford's stock price, and the announcement which the company cut 10% of its staff in the United States and Asia Pacific last week.
Hackett will be tasked with sharpening operational execution, modernizing Ford’s present business and transforming the company for the future.
Ford also announced other leadership changes, with Jim Farley promoted to executive vice president and president, global markets; Joe Hinrichs promoted to executive vice president and president, global operations; Marcy Klevorn promoted to executive vice president and president, mobility. Mark Turby will also replace Ray Day as vice president of communications.