But a strong clue emerged Thursday morning with news that Mark Fields, currently Ford’s President of the Americas, will become the maker’s new Chief Operating Officer, a position all but certain to ensure he eventually moves up upon Mulally’s retirement. But the 67-year-old CEO, clearly in no rush to leave, will pare back his day-to-day role but continue as Ford’s chief strategist and internal cheerleader.
“At least thru 2014. Whatever happens, Alan is here two more years. And we could go longer” Ford Chairman Bill Ford clarified when asked how long Mulally would stay. “Obviously, I love Alan. I’ve never enjoyed working with anyone so much (and) I’d like him to stay forever. But part of the manifestation of a great CEO is developing a great team.”
Both Mulally and Fields heaped praise on the new chief operating office, noting the strong performance of Fields’ operations as revealed in the maker’s third-quarter earnings report. Despite increasing losses in Europe, the company’s net earnings were essentially flat, at $1.6 billion, largely due to the whopping 12% margins in North America – among the industry’s highest and the best at Ford since 2000.
At the next meeting, Fields broke tradition, raising his hand to admit his operations had problems and ask for help. In the past it might’ve been a career-ending move to admit a failure. Instead, it wound up helping cement his future.
“The growth we’ve seen in (Fields) over the last six years has been tremendous,” said Mulally, during a conference call.
Thursday’s announcement also revealed a number of other key personnel changes.
The 45-year-old Joe Hinrichs, seen as a long-shot alternative to Fields, will replace his colleague as President of the Americas. Hinrichs had been running Ford’s crucial and fast-growing Asia Pacific Africa region – which includes booming China – since 2009.
Stephen Odell, a senior executive in Europe was named executive vice president and president of Europe, Middle East and Africa. Odell was until now serving as president, chairman and CEO of Ford of Europe. The British-born executive had overseen the sale of Ford’s former Volvo subsidiary and also served a stint in Japan with Mazda’s former affiliate, Mazda Motor Co. The 57-year-old Odell just last week revealed an extensive turnaround plan for Europe including three plant closures.
Replacing Hinrichs as chief of Asia Pacific operations will be David Schoch, 61, currently the man running the maker’s fast-growing Chinese ventures. African operations will now become realigned with Europe, under Odell.
The final top management shift sees 46-year-old John Lawlor become the chairman of Ford Motor China.
Several observers said they were pleased to see Ford able to keep senior managers such as Hinrichs, Odell and Farley, the latter in particular considered by some likely to jump companies if Fields won the top spot in a bid to move himself up the ladder. For their part, CEO Mulally and Chairman Ford expressed their pleasure in keeping the team together.
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