Ford hires former Lululemon exec to create new software, services in its cars

• Ford announced Friday that Michael Aragon will replace Peter Stern as Ford's president of Integrated Services.
• Aragon, who starts Monday, will report to Ford CEO Jim Farley.
• Aragon served most recently as CEO of Mirror and Lululemon Digital Fitness with Lululemon Athletica Inc.

A day after the Ford Motor Co. board praised CEO Jim Farley for bringing fresh talent to the company, the Dearborn-based automaker announced another top hire: a former executive from Lululemon clothing company to run Ford's integrates services division.

Michael Aragon will replace Peter Stern as Ford's president of Integrated Services. Stern left Ford in December to become CEO of Peloton Interactive. Aragon starts his job Monday and will report directly to Farley.

Ford media relations policy is to not provide executive ages, but in a media release it said that Aragon is "an accomplished technology leader with 25 years of experience building high-growth software and services businesses for major brands."

Job: To create unique services for Ford vehicles

Aragon will lead the team responsible for building and marketing a suite of services and experiences across Ford Pro, Ford Blue, and Ford Model e to capture high-margin revenue and increase customer satisfaction and loyalty. Ford Pro is the company's commercial fleet vehicle division; Ford Blue is its gasoline vehicle division; Model e is its electrified cars.

“The heart of the Ford+ plan is to match our iconic and trusted vehicles with incredible services and experiences that will improve the lives of our customers and help businesses succeed,” Farley said in a statement.

Aragon added that Ford's legacy in the auto industry inspires him and, "We can spark new in-cabin experiences and services that feel seamless and contextual for our customers.”

While Ford did not announce Aragon's salary, a filing with the U.S. Securities and Exchange Commission on Thursday showed that Stern's compensation was listed as $10,826,377, but because he left the company in December, Stern forfeited all unvested equity awards as well as any payment to which he would have been entitled under the annual performance bonus plan and essentally was paid his salary of $925,185, up from $345,653 a year earlier but far below the $8.3 million he was granted in 2023.

Aragon's track record

Aragon's team will focus on Ford Pro productivity software, the Ford BlueCruise hands-free driving system, and safety and security features across the lineup. Ford said its paid subscriptions exceed 800,000.

Ford said Aragon has led high-growth teams in consumer, technology and media, and built digital ecosystems at high-profile startups as well as Fortune 500 companies.

“Mike is the right leader to build on our early success with Integrated Services and help Ford capture this immense growth opportunity," Farley said. "He thrives in transformation and builds high-performance teams. Most importantly, he has a proven track record of helping great hardware companies create valuable digital ecosystems."

Aragon, who holds a bachelor’s degree from the University of New Mexico and a master's of business administration from Dartmouth College in Hanover, New Hampshire, served most recently as CEO of Mirror and Lululemon Digital Fitness with Lululemon Athletica Inc. Before that, Aragon was chief content officer of Twitch, the Amazon-owned livestreaming service. At Twitch, he helped build one of the largest and most active live, interactive communities across gaming, sports, music and talk shows.

Ford said Aragon served as a general manager for Crunchyroll parent Ellation and as vice president for Sony’s PlayStation Network before Twitch, Ford said. At PlayStation Network, he helped transform it into a global online community through software and services, Ford said.

Why Aragon chose Ford

In the release, Aragon said he wants "to help a storied and trusted company like Ford serve customers in new ways and ultimately lead the next era of mobility. I’m inspired by Ford’s legacy as an iconic, family-led American company that is driving innovation."

Aragon said Ford Pro, especially, has massive potential for growth given its sales success. In January, Ford reported sales of its Transit van totaled 152,738 for 2024, up 18% over 2023. Fourth-quarter Transit sales were up 24% on sales of 38,457 vans. Ford said it was the top seller in commercial vehicle sales based on the most recent registration data through October. Ford U.S. Class 1-7 commercial truck and van share grew to 41.2%, up 1.5 percentage points compared with the same period last year.

“Ford’s commercial fleet capabilities are unmatched, and there is a huge opportunity to harness software, data, and services to help our business customers run safer, more efficient, more profitable businesses,” Aragon said. “Ford Pro has already built a strong base, and I want to help amplify it and bring it to the next level.”

Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.