It was also announced that Joe Hinrichs is retiring as Ford's president, Automotive, after a highly accomplished 19-year career with the company.
The changes come as Ford is moving with urgency to fully integrate and accelerate its transformation into a higher-growth, higher-margin business by leveraging smart, connected vehicles and services.
Since 2017, Ford has made important progress in transforming the company in the face of sweeping technological change and disruption in the auto industry while working to improve the fitness of its base business - restructuring operations, invigorating the product portfolio and improving fitness.
"Jim Farley is the right person to take on this important new role," Hackett said. "Jim's passion for great vehicles and his intense drive for results are well known. He has also developed into a transformational leader with the imagination and foresight to help lead Ford into the future."
"I'm thrilled and humbled by the opportunity to work with Jim Hackett and the entire Ford team to advance our vision to design increasingly intelligent vehicles and connect them to the world around us, all to make life better for our customers and communities," Farley said. "Ford is blessed with great people and an incredible brand, and together we will build a very bright future."
In addition, Ford announced that Hau Thai-Tang, chief product development and purchasing officer, will take on an expanded role reporting to Jim Farley. Thai-Tang, will continue to lead Product Development and Purchasing, while adding responsibility for Enterprise Product Line Management and connectivity.
"Hau will be the primary architect as we bring together the vehicle architecture and software stack to create products, services and experiences our customers will love," Hackett said. "We are moving forward with an integrated approach to vehicles and connected services, all anchored in an obsession for the customer, great design and a commitment to strong returns." says Hackett.
All the changes announced will be effective 1 March 2020.