Joe Heinrichs, a former top Ford Motor Company executive, will take over on September 26 as chief executive of CSX, the third largest railroad in America with 23,000 miles of track that transports everything from automobiles to construction, agriculture, consumer and does. energy products.
Hinrichs, who arrived by the Free Press on Thursday within hours of the announcement, expressed relief that a potential rail industry strike had been averted through intense negotiations between union leaders and rail carriers over the past 24 hours. The shutdown involving 115,000 workers may have crippled the automotive industry and that possibility was discussed during a visit by President Joe Biden at the Detroit Auto Show on Wednesday.
“I think we have been reminded this week of how important the rail industry is to our economy and our country, with work likely to stop,” Heinrich said. “You look at the rail industry: it’s been almost two centuries. I think people take rail lightly, maybe not this week but just in general. It’s such a backbone.”
He said about 40% of all goods that travel cross-country do so by rail, which is cheaper and better for the environment than trucking.
backbone
The timing of their announcement, along with news of a tentative union agreement released early Thursday, was “impeccable”, Hinrichs said. “I’m really appreciative of a compromising team,” Heinrichs said. He will replace CEO Jim Foote, who is retiring.
Foote praised Heinrichs and said the railroad would benefit from his manufacturing experience.
“Joe’s greatest strength is operational excellence,” Foote said in a statement. “He has proven he understands how to prioritize safety and efficiency in the mobility industry that we are navigating on rail today.”
UAW, UNIFOR Experience
The company has an estimated 25,000 employees and according to its website had $13.9 billion in annual revenue.
Hinrichs will earn a starting annual base salary of $1.4 million, with an initial annual target bonus opportunity of $2.1 million. He will also receive $7 million in stock as a sign-on prize. According to paperwork filed with the U.S. Securities and Exchange Commission, the company is paying for housing for its first four months in Jacksonville and personal flights on corporate planes.
He brings extensive experience working with labor leaders to the new position. CSX is 85% federated, Heinrichs noted.
“My background experience in finding solutions and working closely with labor leaders and employees is, I think, something I can bring to the table. I’m really proud of that, all of my relationships were at UAW and Unifor.” Heinrich said. “I have a lot of appreciation and love and respect for the people who work in the plants, in this case the people at CSX who keep the trains running every day and are working in the rail yards.”
He said that he is proud to create a culture of teamwork and grow the business. When you consider the environment, Heinrichs said, rail is three to four times more fuel-efficient for transporting materials than trucks.
“If you want to help with emissions, we definitely need to use rail more. And it costs less than trucking. And trucking has less labor with truckers, congestion on roads, trucking.” There are many challenges with emissions,” Heinrichs said.
All rail customers living east of the Mississippi in the auto industry will be supported by CSX, Heinrichs said. “It’s almost everyone else, including the new Rivian plant in Georgia and the Ford plant outside Memphis.”
keeping a michigan house
Heinrichs, now 55, left Ford in February 2020 as president of global automotive operations. The industry was shocked by the sudden departure of a 19-year-old veteran of the company. He was described as valuable and respected and “beloved” by then-Ford CEO Jim Hackett. Hackett described the situation as a moment of opportunity for all.
Prior to Ford, Heinrichs worked as a 29-year-old plant manager at General Motors, leading a powertrain plant in Virginia that reached a 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.
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During the period between Ford and CSX, Heinrichs has held board and advisory positions with various companies.
Hinrichs, who was in Jacksonville, Florida, where CSX is headquartered, said Thursday along with his wife, Maria, that he would relocate but would keep his home in Michigan. “My roots are in the Detroit area. We’re not going to leave them. Our kids are there.”
Contact Phoebe Wall Howard: 313-618-1034 or [email protected] Follow him on Twitter @phoebesaid.