Analyst reacts to news of top Ford executive's departure

Back in 1989, Ford's (F) message to the driving public was once "Quality is Job 1."

At the time, Ford was once looking to challenge the upward push of Japanese imports, according to Autoweek, and began a significant push to beef up and embrace quality within the late Seventies and early Eighties.

Related: Ford’s most modern in-car tech will make driving very annoying

Ronald Reagan was once president of the United States, the Berlin Wall was once coming down, gasoline was once going for a buck a gallon, and the common cost of a car was once $12,000.

And it truly is the reason the year Ted Cannis started working at Ford. Now, after 35 years, Cannis, CEO of Ford Pro, the automaker's commercial vehicle services and distribution division, is planning to retire on the tip of the month.

Cannis has led Ford Pro since its formation in 2021 and, since last year, has also headed up the Ford Customer Service Division (FCSD), which handles global parts, services, accessories, and vehicle customization for Ford dealers and customers worldwide.

“Ted’s energy and fervour for purchasers has been instrumental in building Ford Pro into a business that’s tracking towards $70 billion in revenue this year – a Fortune A hundred-size company in its own right,” Jim Farley, Ford president and CEO, said in an announcement.

Ford exec praised Pro division

“Ford Pro is now poised to change into an actual, technology-driven growth business – evidenced by the 600,000 paid subscriptions within the 2nd quarter – and a greater competitive advantage for Ford and our customers," Farley added.

"End of an era. no more passion for the distance than shall be seen in @tedcannis congrats on a FANTASTIC career and always being an inspiration!" Brian Caiazza said X, formerly Twitter.

Related: Tesla stock reacts to FSD roadmap upfront of robotaxi hype

Cannis began his career at Ford in finance and went on to serve in leadership positions in Venezuela, Argentina, Turkey and Russia, the Detroit Free Press reported.

From 2017 to 2020, he was once the worldwide director of electric vehicles, leading the team that developed the Mustang Mach-E. He was once also involved within the improvement of the F-A hundred and fifty Lightning and E-Transit.

“It’s been some of the most thrilling and rewarding chapter of my career to lead Ford Pro and FCSD,” Cannis said in an announcement

“Ford Pro is a profitably growing business with unmatched scale, talent, and the right kind dealers and upfitters – all to serve the people and businesses who keep our economy and communities humming," he said. "I may’t wait to search into Ford Pro and FCSD continue to innovate and grow.”

Andrew Frick, president of Ford Blue, the corporate's internal combustion engine segment, will take the wheel at Ford Pro until the corporate announces a new leader.

Daniel Justo was once named vice president of FCSD and a company officer, effective Oct. 1. Justo is currently chief financial officer of Ford Blue and was once previously president of Ford South The U.S.. In his new role, he's going to report back to Frick.

Ford Pro is regarded as to be the corporate's single most powerful weapon, raking in $2.6 billion within the 2nd quarter. The corporate reported $forty seven.8 billion in revenue, up 6.2% from a year ago.

Ford's stock is down 12.8% year-to-date, and shares are off thirteen% from a year ago.

Analyst calls Ford exec's departure 'big loss'

Last month, Ford said it was once delaying a new plant to produce a next-generation, all-electric pickup truck, canceling plans for a three-row electric SUV and prioritizing hybrids as a substitute.

At some stage within the carmaker's earnings call, Farley told analysts, "our Ford Pro business is amazing."

More Automotive:

• Huge automaker is pulling the plug on ambitious EV plans
• Hyundai's most modern EV is a threat breathing down Tesla's neck
• Park next to against the law? Police say your Tesla shall be a celeb witness

He said the division’s “robust and fresh lineup” of vehicles “are seeing resilient revenue streams according to a a lot longer tail spending on the infrastructure by government and personal enterprise.”

"We dominate small business and medium business with tradesmen, but we now have very large customers," he said. "We now have state, local, and national governments. And we now have rental, which by the manner, is very profitable for Pro."

"Essentially, within the U.S., one out of four of those fleets, mom-and-pop, tradesmen the entire manner to very large companies, one out of four of those fleets within the U.S. are Ford best," he said.

Farley said, "The massive opportunity for Pro is beyond vehicles, and it truly is the reason where we're focusing."

"With Pro Power intelligence, we now have a highly differentiated telematics offering," he said, regarding the corporate's fleet software. "We offer real-time driver coaching, which supplies significant improvements for driver safety and now is supplied in about 0.5 of of our modem-enabled Pro vehicles."

Morgan Stanley analyst Adam Jonas known as Cannis's exit a "big loss" for the corporate, according to The Fly, and said the retiring executive was once "one in every of some of the most competent and well-respected leaders at Ford."

Noting that Ford did not announce his replacement, Jonas said he expects a replacement from outside the corporate.

Jonas, who has an overweight rating and a $Sixteen price target on Ford shares, added that "investors will look into unexpected departures of executives running highly a hit business units and ask if there are any underlying fundamental implications at play."

Related: Veteran fund manager sees world of pain coming for stocks