DETROIT－Jim Farey will lead Ford into the future as the global auto industry faces a new era of autonomous and electric vehicles.

The company named Farley, 58, as its new CEO effective from Oct 1, replacing Jim Hackett, who will retire after three years at the helm. Farley, who has been with Ford for more than a decade, has been chief operating officer since February.

He faces tough challenges as the industry emerges from the coronavirus pandemic. Ford is losing money and is transitioning from an aging model lineup to new vehicles, including those powered by electricity. It's also in the midst of an $11 billion restructuring plan to cut costs, bureaucracy and make money off its autonomous vehicle unit.

Executive Chairman Bill Ford, the great-grandson of founder Henry Ford, said the board briefly discussed looking outside for a CEO, but was inspired by Farley's leadership and felt the company is moving in the right direction. "We talked about it and we did throw some names around," he said on a conference call Tuesday. "Every time we did that, we always felt that Jim Farley rose to the top."

As COO, Farley led the company's global markets and product development. He was in charge as Ford rolled out a revamped F-150 pickup－the USA's best-selling vehicle－the new Bronco off-road SUV brand and the electric Mustang Mach-E SUV.

Farley, who was hired away from Toyota by then-CEO Alan Mulally in 2007 to run Ford's marketing operations, said on Tuesday that his main goal is for a smooth transition. But he has plans for the future that will be announced later.

The company, he said, would continue on the path set by Hackett, with priorities of reaching a 10 percent profit margin in North America; seeking immediate material and warranty cost improvements; fixing under-performing businesses; maximizing opportunities in commercial vehicles; and outperforming the industry in rolling out new models.

The 117-year-old company, he said, would grow and expand where it is strong, like making the transition from internal combustion engines to electric-powered commercial vehicles. It also wants to move more toward digital sales and add revenue from services such as electric vehicle charging and software, he said in an interview.

Ford has been phasing out most cars in recent years because they didn't make money. But that has left the company without low-priced vehicles. Farley said he wants to change that by using Ford's lower cost structure "to really create a lineup of more affordable products that go below what we offer today, so the brand is approachable and affordable, but do so in a profitable way."

He wouldn't say whether the new vehicles would be cars or SUVs.

In a nod to the changing auto industry, Farley left out traditional rivals General Motors and Fiat Chrysler when naming Ford's competitors. Instead, he identified them as retail giant Amazon; Chinese search engine Baidu; electric car maker Tesla; iPhone maker Apple; and Japanese automaker Toyota.

Farley said on Tuesday that he's optimistic about Ford's future as new products arrive and cost-cutting takes hold.

Hackett, a retired Steelcase office furniture CEO who had run Ford's mobility efforts, will stay on as an adviser through March. Bill Ford praised Hackett for taking difficult steps to modernize the company, reducing bureaucracy and preparing it for the future.

"We now have compelling plans for electric and autonomous vehicles, as well as full vehicle connectivity. And we are becoming much more nimble," Ford said. He cited Ford's quick shift to make ventilators, face shields and other protective equipment at the start of the coronavirus pandemic. Hackett also made the difficult decision to move Ford out of the sedan business in the US as the market shifted dramatically to SUVs and pickup trucks.

AP