Joe Heinrich, former CEO of Ford Motor Company, will take over the role on September 26 as CEO of CSX, the third largest railroad in the United States with 23,000 miles of rail that transports everything from automobiles to construction, agriculture, consumer and energy products.
Hinrichs, contacted by Free Press on Thursday within hours after the announcement, expressed relief that a possible strike in the rail industry had been averted in the past 24 hours through intense negotiations between union leaders and rail companies. A shutdown of 115,000 workers could have crippled the auto industry, and that possibility dominated the debate during President Joe Biden’s visit to the Detroit Auto Show on Wednesday.
“I think this week we were reminded of how important the rail industry is to our economy and our country, with the potential for business to stop,” Heinrichs said. “You look at the rail industry: It’s been almost two centuries. I think people tend to take rail for granted, maybe not this week but in general. It’s a backbone.”
He said about 40% of all goods traveling across the country do so by rail, which is cheaper and better for the environment than trucking.
Henrix said the timing of his announcement, which came early Thursday with news of an interim union agreement, was “impeccable.” “I really appreciate the team getting an agreement,” Henrix said. He replaces CEO Jim Foot, who is retiring.
Fout praised Heinrich, and said his manufacturing experience would benefit the railroad.
“Joe’s great strength is operational excellence,” Foote said in a statement. “He has demonstrated that he understands how to prioritize safety and efficiency in an industry with similar dynamics to those we navigate today on rail.”
UAW, UNIFOR تجربة Experience
The company has an estimated 25,000 employees and has annual revenue of $13.9 billion, according to its website.
Hinrichs will earn an initial annual base salary of $1.4 million with an initial target annual bonus opportunity of $2.1 million. He will also get $7 million in inventory as a login prize. The company pays for Jacksonville housing for its first four months and for personal flights on the company’s planes, according to papers filed with the US Securities and Exchange Commission.
He brings to the new position extensive experience working with business leaders. Hinrichs noted that CSX is 85% unionized.
“I think my background experience finding solutions and working alongside business leaders and with employees is something I can bring to the table. I’m really proud of that, with all the relationships I’ve had at UAW and UNIFOR,” said Henrix. “I have great appreciation, love and respect for the people who do the work in the factories, in this case the people at CSX who keep the trains running every day and work on the rail yards.”
He said he is proud of building a culture of teamwork and business development. When you think about the environment, Hinrichs said, rail is three to four times more fuel efficient for moving materials than trucks.
“If you want to help with emissions, we definitely need to use rail more,” Heinrichs said. “It’s less expensive than trucking. Trucking also faces a number of challenges with labor shortages with truck drivers, road congestion, and trucking emissions.” “.
Heinrichs said all of the railroad’s eastern Mississippi customers in the auto industry will be supported by CSX. “Almost everyone, including the new Rivian plant in Georgia and the Ford plant outside of Memphis.”
Michigan home save
Hinrichs, 55, left Ford in February 2020 as head of the global automotive operation. The sudden departure of a 19-year-old veteran stunned the industry. Jim Hackett, then CEO of Ford, described him as well-respected and “liked”. Hackett described the situation as a moment of opportunity for everyone.
Prior to Ford, Hinrichs worked at General Motors as a 29-year-old plant manager, driving a power plant in Virginia that had success worthy of a Harvard Business School case study. He holds a Bachelor’s degree in Electrical Engineering from the University of Dayton and an MBA from Harvard University.
more:Ford Loses a Leading Leader: Where Does It Work Now
more:In a major turnaround for Ford, two longtime executives are retiring, a former Amazon executive joins the team
more:Ford Motor Company is losing a high-profile digital executive who is the company’s contact for ‘nervous’ auto dealers
During the period between Ford and CSX, Hinrichs held positions on boards of directors and in consulting with various companies.
Henrix, who was in Jacksonville, Florida, where CSX is headquartered, with his wife Maria, said Thursday that he will move but will keep his home in Michigan. “I have roots in the Detroit area. We won’t leave them. Our kids are there.”
Contact Phoebe Wall Howard: 313-618-1034 or firstname.lastname@example.org. Follow her on Twitter @phoebesaid.
#Joe #Henrix #Named #CSX #Rail #CEO #Rail #Strike #Negotiations