Ford CEO Mark Fields Feels The Heat From Board | Fox Business

Ford Motor Co.'s (NYSE:F) directors plan to press Chief Executive Mark Fields to clarify his strategy as the company's stock price languishes and its U.S. market share recedes, according to people familiar with the situation.

Company directors, slated to gather this week in Dearborn, Mich. ahead of the annual shareholders meeting, scheduled an additional day of talks to address growing uncertainty about the auto maker's course, these people said. Ford has been solidly profitable since Mr. Fields became CEO in July 2014, but shares have fallen by about a third in that period.

"We do not share details or discussions from our board meetings for competitive reasons," a Ford spokesman said.

Ford shares traded at $11.17 Tuesday afternoon. The stock slipped below $11 earlier in May, its lowest point since August 2015.

Founded in 1903 by one of the industry's most iconic figures, Henry Ford, the auto maker was dealt a blow in early April when its market capitalization fell below electric-car startup Tesla Inc.

Tesla is valued at $52.4 billion, or 18% higher than Ford's, despite the Silicon Valley electric-car company's financial losses. Tesla sells a fraction of the cars delivered by Detroit's auto makers, but is seen as having an inside track on the industry's future: electric vehicles and self-driving cars.

When asked about Tesla's surge during an earnings call last month, Mr. Fields said Ford needs to do a better job quantifying the revenue and profit-growth potential of its technology bets. "We've talked about the investments, and we'll do that going forward," he said.

While Chairman Bill Ford and other directors support Mr. Fields, they are urging him to heighten his focus on growth opportunities, the people said.

Mr. Fields, a 28-year veteran of Ford, took the helm after his predecessor, Alan Mulally, restructured the company by selling off brands and simplifying operations. Mr. Mulally, currently a member of Alphabet Inc.'s board, oversaw a succession race that included members of Mr. Fields's current management team. He also helped the No. 2 U.S. auto maker avoid bankruptcy, unlike its Detroit rivals.

Mr. Fields has focused on accelerating growth in Asia, jump-starting the company's Lincoln brand and placing bets on future technologies.

Ford is facing pressure as the U.S. auto market is leveling off after seven consecutive years of growth. The auto maker's profits have been dented by falling sales and vehicle recalls.

The company also is shouldering higher costs as Mr. Fields seeks to venture beyond its core business of building and selling cars. He is pushing into new areas such as ride-sharing and autonomous vehicles and placing bets on new initiatives aimed at reducing Ford's exposure to the auto industry's boom-bust cycles.

However, some senior managers are concerned the company is spending too much time and energy on bets that will take years to pay off, say people familiar with the situation.

Ford's closest rival, General Motors Co., also is investing in technology and is far ahead on electric cars. Forddoesn't plan to launch a long-range battery-powered vehicle until 2020.

At the same time, Silicon Valley firms including Alphabet, Apple Inc., Intel Corp. and a number of startups are acquiring auto suppliers and spending billions on vehicle testing in a bid to unseat Detroit.

In 2016, Mr. Fields was awarded a $2.5 million stock incentive to continue broadening the company's strategy beyond the profitable trucks and SUVs that deliver the bulk of profits.

Under a deal laid out in the company's proxy statement, management was to focus on making progress on autonomous vehicles, supercharging the Lincoln brand, increasing market share in China, "developing a lean mindset" and pursuing "moonshot" ideas such as ride-sharing ventures.

Under Mr. Fields, Lincoln has gone from a tarnished afterthought in the global luxury car market to one of the faster-growing brands in the U.S. It is also making inroads in China, a huge auto market where Ford is far behind.