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Ford reorganizes execs
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October 15, 1999: 4:46 p.m. ET
New CFO, new focus on brands and regions to respond to market changes
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NEW YORK (CNNfn) - Ford Motor Co. announced a management and organizational restructuring Friday and the appointment of a new chief financial officer.
The changes at Ford (F) give 11 vice presidents and three group vice presidents new titles and reorganize responsibilities along brand and regional lines, effective Jan. 1. The moves will result in no restructuring charge or closure of any of its excess plant capacity, though.
Jac Nasser, Ford's president and chief executive, said the new organization's emphasis on brand and geographic regions will let it react more quickly to changing market conditions.
Among the numerous management changes announced was the appointment of Henry Wallace, a group vice president, as the new chief financial officer. Wallace is now in charge of the company's Asia Pacific operations and has also headed up Mazda Motor Corp., of which Ford owns a 33 percent stake.
Wayne Booker, the company's vice chairman, had been interim CFO since the resignation in May of John Devine. Booker, 65, will return to his previous duties.
Ford said Mazda and its Visteon Automotive Systems parts unit will operate as global business units as part of the reorganization.
Visteon, subject of spin-off rumors for several months, will not be served by several "global centers," such as purchasing, marketing, manufacturing and product development/quality, within the company's new organization structure. But David Murphy, the company's vice president of human resources, said this was not a sign that the division is any closer to spin-off.
"Don't take this as an indication that over the next few weeks we'll deprive Visteon of support it has received in the past," he said. "It'll continue to be a key part of the company until we make a decision."
No executives lost their jobs in the reorganization, although two have announced retirement plans. The number of vice presidents at the company increased by three to 43, while the number of group vice presidents stayed at seven. The company said the new structure will help the company develop future top executives.
"If we're going to become the kind of company we talk about in terms of business acumen, we have to have a pipeline of really great business leadership coming through," said Murphy.
The restructuring had been expected for some time, and is the latest shake-up Nasser has brought to the company since becoming CEO in January. Competitor DaimlerChrysler AG (DCX) announced a top management reorganization and streamlining last month, in a move that was widely seen as consolidating the power of the German executives at the German-American company.
Ford's stock closed down 2-1/2, or 4.7 percent, Friday at 50-9/16.
-- from staff and wire reports
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Ford Motor Co.
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