DETROIT —  Ford Motor Co.’s Joe Hinrichs, 53, will retire as president of automotive, and Jim Farley, 57, president of new business technology and strategy, will become COO, Ford said.

The changes are effective March 1. Farley will report to CEO Jim Hackett.

Ford said the changes are meant to “accelerate its transformation into a higher-growth, higher-margin business.” 

On Wall Street, Ford shares fell 2.5 percent in early trading to $8.04.

Hinrichs had been at Ford for 19 years while Farley joined the company in 2007.

“Jim Farley is the right person to take on this important new role,” Hackett said in a statement. “Jim’s passion for great vehicles and his intense drive for results are well known. He also has developed into a transformational leader with the imagination and foresight to help lead Ford into the future.” 

Farley is expected to retain his role as head of Ford Smart Mobility, the company’s  autonomous vehicle unit, and its partnership with Argo AI, a Pittsburgh-based autonomous technology firm. 

Hinrichs was well-respected in Ford’s factories and recently helped the automaker come to terms on a new four-year contract with the UAW. 

“I thank Joe for his tremendous leadership over the past two decades,” Hackett said. “Joe was instrumental to Ford’s ability to survive the Great Recession a decade ago without bankruptcy or taxpayer bailout, and successfully headed Ford’s operations in Asia Pacific and North America. Most recently, Joe oversaw our global portfolio of iconic vehicles, helped forge a long-term, mutually beneficial relationship with the UAW and was regularly sought out as an authority and promoter of smart global trade.” 

In addition, Hau Thai-Tang, Ford’s chief product development and purchasing officer, will take on an expanded role and will report to Farley, Ford said. He will add responsibility for the company’s Enterprise Product Line Management and connectivity arms. 

“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.” 

A press conference is set for later this morning. The Wall Street Journal reported the move earlier.

This story will be updated.