Ford Makes Major Management Changes

10/14/96

Reuters has reported that Ford Motor Company has made some major changes in senior management and has decided to reorganize big parts of its global operations. The biggest change involves the promotion of Jack Nasser from group vice president responsible for product development to replace Edward Hagenlocker as president of global automotive operations.

Hagenlocker has become vice chairman of a newly organized division that includes automotive components, land development, technical affairs and rental car operations. Referring to the reorganization in a statement, Ford CEO Alex Trotman said, "We are separating the automotive components business from Ford Automotive Operations to focus senior management attention on making it more competitive in its own right. I have asked Ed Hagenlocker to take on the crucial assignment of making this happen."

The management shakeup, which has been expected for months, intensifies the speculation about who will succeed Trotman, currently Ford's chairman, ceo, and president. Trotman reaches the mandatory retirement age of 65 in 1998, although the board could ask him to stay longer.

As part of its management changes and streamlining, Ford will reorganize its global product development operations for the second time in two years. It will cut the number of vehicle development centers from five to three, and it will reduce its vehicle line directors from seventeen to eleven.

Until now Ford has maintained a vehicle development center for small cars in in Merkenich, Germany and Dunton, England; and development centers for large front-wheel drive cars, large rear-wheel drive cars, light trucks, and commercial trucks in Dearborn, Michigan. under the new plan small car development will stay in Merkenich and Dunton, while the large and luxury car development center and the truck development center will each be consolidated in Dearborn.

Ford staff of vehicle line directors, each of whom is responsible for a major family of vehicle models, will be reduced from 17 to 11. The changes follow the streamlining track laid down by the company's "Ford 2000" global reorganization plan, which combined U.S. and European development groups into a single unit and reduced the total number of different vehicle platforms the company offered. The company initiated the "Ford 2000" plan less than two years ago.

Trotman's statement about the reorganization said, "we have been able to simplify and streamline the organizational structure now that we are reducing our vehicle platforms by 50 percent.

"Using the 16 vehicle platforms and at the same time increasing the number of derivatives, we can provide a broader array of vehicles for customers in many more markets. This simplified product system will help us intensify efforts to improve quality and lower costs."

Other changes in Ford's management structure include the naming of two new executive vice presidents: Wayne Booker, former head of international operations; and former Chief Financial Officer and Group Vice President John Devine. Ford also announced the promotion of James Englehart, formerly vice president of the vehicle center that developed light trucks. Englehart will take Nasser's old job as group vice president responsible for product development.

A Ford spokesman said no additional employment reduction initiatives will result from the reorganization. The company already has early retirement programs and efforts to reduce contract positions in place.

Paul Dever -- The Auto Channel