Ford has named former Boeing executive Alan Mulally as its chief executive, ending the troubled five-year stint of Bill Ford Jr as the operational head of the car maker founded by his great-grandfather.
Mr Mulally, who spearheaded the resurgence in Boeing's commercial plane division after the sharp decline that followed the attacks of September 11th, 2001, becomes one of the first chief executives of a major automaker from outside the industry.
The radical choice is the latest indication of the pressure on Ford to step up its cost-cutting, shake up its product development plans and revamp its entire way of doing business.
Bill Ford Jr, whose family retains a controlling ownership stake company will stay on as executive chairman and said he would remain active in the company's management.
Ford posted a $1.44 billion loss in the first half of the year, and its US sales this year have declined by nearly 10 per cent through August.
Last week, Bill Ford had said the company needed a new business model and had to attract outside executives who would find sources of growth beyond the company's once-profitable reliance on sales of trucks and SUVs.
Ford's stock and bonds rose in reaction to Mr Mulally's appointment, which analysts said signaled Bill Ford's commitment to a more sweeping shake-up of the 103-year-old company.
Under Bill Ford Jr, who took over as chief executive in October 2001, the company's US market share dropped from near 23 per cent to about 17 per cent. Its share price fell by almost 70 per cent over the same period.
Investors and analysts praised the appointment, given the pressure on Ford, but said the company's unsolved problem remains its reliance on an ageing and uninspired line-up of pickup trucks and SUVs - an area where an experienced auto industry executive might have helped faster.
Analysts said they expected Mr Mulally's arrival would mean that Ford would reexamine all its assets, including the struggling Lincoln division and other nameplates such as Land Rover and Jaguar.