Key Ford Leaders to Report Straight to CEO For More Global Focus

DETROIT December 15, 2006; David Runk writing for the AP reoported that more of Ford Motor Co.'s key leaders will report directly to Chief Executive Alan Mulally as part of a realignment designed to create a global business approach and speed the development of new vehicles.

The nation's second-largest automaker has already announced plans to close 16 plants and is cutting tens of thousands of jobs in an effort to make a profit by 2009. But Ford has said all along that the success of its turnaround depends on its products.

Mulally, who took over as CEO of the struggling company three months ago, said Thursday that Derrick Kuzak, currently group vice president for product development in the Americas, will lead global product development and report directly to him.

The new approach "will enable us to make the best use of our global assets and capabilities and accelerate development of the new vehicles our customers prefer, and do so more efficiently," Mulally said in a written statement.

Catherine Madden, an auto industry analyst at the consulting company Global Insight Inc., said Ford could cut costs with a more global structure. But she said the company must remain attentive to unique factors that drive vehicle demand in different regions, from infrastructure to gasoline prices, to make it work.

"If executed properly, it certainly could help their bottom line as well as the products they produce," Madden said.

Kevin Reale, an automotive analyst at AMR Research Inc., said Ford's latest shuffling is similar to what No. 1 U.S. automaker General Motors Corp. has been doing in taking a more global approach. Reale said Kuzak's experience using common platforms for multiple vehicles in Europe will be valuable. Kuzak previously was Ford of Europe's vice president for product development.

"I think he is really going to create some of the fundamental change that needs to happen," Reale said.

Ford in the recent past hasn't had an executive in charge of global product development. In 2005, GM put Bob Lutz in charge full-time of global product development for the world's largest automaker.

Kuzak will also continue to be responsible for product development in the Americas. J Mays will continue to lead Ford design and will support Kuzak.

Under the new structure, three automotive business unit leaders -- instead of the previous one -- will report directly to Mulally, a former Boeing Co. executive who took over the top Ford job from Chairman Bill Ford, who is part of the automaker's founding family.

Lewis Booth, executive vice president in charge of Ford of Europe and the Premier Automotive Group; and John Parker, of Ford of Asia Pacific and Africa, and Mazda, will now report to the Mulally. Mark Fields, Ford's president of the Americas, will continue to report to the CEO under the new structure.

"Mulally is starting to make them act like a global company," Reale said.

Previously, Booth and Parker reported to Mark Schulz, Ford's president of international operations. Last week, Ford announced that Schulz -- who oversaw business in Europe, Africa and the Asia Pacific Region -- will retire early next year.

Others who will report directly to Mulally include: Tony Brown, purchasing; Bennie Fowler, quality and advanced manufacturing engineering; Nick Smither, information technology; and Richard Parry-Jones, chief technical officer.

Brown and Fowler previously reported to Fields, while Smither and Parry-Jones had reported to another executive. Kuzak, in his role leading product development for the Americas, previously reported to Fields.

Dearborn-based Ford has been working on its "Way Forward" North American turnaround plan, which was announced in January and updated in September. The company lost $7 billion during the first nine months of this year.

Even before Mulally took over, the automaker had talked about making better use of its global assets and leadership, as well as speeding the turnaround, to achieve success.

Thursday's announcement came after the close of regular trading on Wall Street.

Ford Motor Co.: http://www.ford.com