Ford Motor Company Reorganizing in Europe

06/20/96

Calling the reorganization "bittersweet," Ford's chairman Alex Trotman announced that Ford will shakeup their European Management in order to help build market share on the continent.

The reorganization comes with the retirement of Albert Caspers from his position as head of Ford's German unit Ford-Werke AG and head of Ford Europe. The reorganization of Caspers' duties calls for his position as head of both units to be split among two successors at the end of July. Willie Boddie, the executive director of Ford's small and medium-sized vehicle center in Cologne, will become Ford Werke's chairman, while Ed Hagenlocker, president of Ford's automotive operations, will become chairman of Ford of Europe.

The announcement was not unexpected, and Ford has asked Caspers, 63, to serve as chairman of Ford-Werke's supervisory board in order to assist in a smooth transition of power. Caspers joined Ford in 1958, became chairman at Ford-Werke in 1993, and took over as head of Ford of Europe in 1994.

Ford credits Caspers for guiding Ford-Werke out of the red by demanding better engines and handling for its cars, and by improving the company's image in Germany by sponsoring sports events. In Germany, Europe's largest car market, Ford's market share has grown from 9.3 percent in 1993 to 11.3 percent. Trotman says he expects the new management team to continue building up Ford's European market share, and hopes the company can win a 15 percent European market share. He declined to say when that goal would be achieved.

Ford-Werke's net profit sank sharply last year, but Caspers said the dip was due to one-time factors such as product launches. Ford-Werke's group net profit in 1995 fell from $446.3 million to $178.5 million. The outfit's operating profit, however, was $336.8 million in 1995, down less dramatically from $482.6 million in 1994.

Paul Dever -- The Auto Channel