Former Ford exec Joe Hinrichs named CEO of railroad as strike negotiations end

Joe Hinrichs, a former top executive at Ford Motor Co., will take the helm Sept. 26 as chief executive of CSX, the third largest railroad in the U.S. with 23,000 miles of track that transport everything from automobiles to construction, agricultural, consumer and energy products.

Hinrichs, reached by the Free Press on Thursday within hours after the announcement, expressed relief that a potential rail industry strike had been averted over the past 24 hours through intense negotiations between union leaders and railroad carriers. A shutdown involving 115,000 workers could have crippled the automotive industry and that prospect dominated discussion during President Joe Biden’s visit to the Detroit auto show Wednesday.

“I think we got reminded this week just how important the rail industry is to our economy and to our country, with the possibility of a work stoppage,” Hinrichs said. “You look at the rail industry: It has been around almost two centuries. I think people tend to take rail for granted, maybe not this week but in general. It’s such a backbone.”

About 40% of all goods that travel cross-country do so by rail, which is cheaper and better for the environment than trucking, he said.

Backbone

The timing of his announcement, released early Thursday along with news of a tentative union agreement, was “impeccable,” Hinrichs said. “I’m really appreciative of the team getting an agreement,” Hinrichs said. He replaces CEO Jim Foote, who is retiring.

Foote praised Hinrichs and said his manufacturing experience will benefit the railroad.

“Joe’s great strength is operational excellence,” Foote said in a statement. “He has proven that he understands how to prioritize safety and efficiency in an industry with dynamics that are similar to those we are navigating today in rail.”

UAW, UNIFOR experience

The company has an estimated 25,000 employees and had $13.9 billion in annual revenue, according to its website.