Ford to Name Controller as CFO

DETROIT July 10, 2003; Justin Hyde writing for Reuters reported that Ford Motor Co. plans to name Controller Don Leclair as its chief financial officer and give Vice Chairman and current CFO Allan Gilmour responsibility for long-term strategy, a source familiar with the company's plans said on Thursday.

The promotion of Leclair, a 27-year veteran of Ford, would end a lengthy search by Ford Chairman and Chief Executive Bill Ford Jr. to find a successor for the 69-year-old Gilmour, who was coaxed out of retirement in 2001 to help launch a company turnaround plan.

If approved as expected during a meeting of the board of directors Thursday, the moves will not likely mean any change in Ford's strategy. Gilmour has already begun assuming the duties of Carl Reichardt, Ford's other vice chairman, who is retiring this year, and will continue to oversee the company's finances and its Ford Credit lending arm.

Ford spokesman Ron Iori declined comment.

The world's second-largest automaker has had trouble sticking with CFOs, with five executives holding the title over the past four years. The job, perhaps one of the hardest CFO positions in the world, has only been made more difficult by Ford's turnaround target of $7 billion in annual pretax profits by mid-decade.

Most of that goal will be met through cost-cutting, which Gilmour has played a pivotal role in accelerating during his tenure. In the first quarter, Ford said it cut $638 million in costs, surpassing its full-year target of $500 million.

Ford says the industry has 3 million to 4 million units of excess capacity in North America, which is pushing down prices. Both General Motors Corp. and Ford are facing tens of billions of dollars in pension costs and future health care liabilities, and with little pricing power left, the extra costs must be balanced with cuts.

Ford had hired an executive search firm to seek outside candidates for the CFO job. But it's rare for any automaker to bring in a CFO from outside the industry because of the scale and complexities of the job. Ford hasn't hired an outsider to run its finances since Henry Ford II brought in the famed "Whiz Kids," including Robert McNamara and Ed Lundy, just after World War II.

Over the past couple of months, speculation within the company had Leclair and Ford Credit Chairman and CEO Greg Smith as front-runners for the CFO job.

In June, Bill Ford Jr. said the company had stopped looking for a new CFO.

"We've got a good idea of what we want to do," he said at the time, without giving more specifics.