Saturday, January 11, 2014

Ford shakeup at top sets table for Mark Fields

The retirement of three top, well-respected Ford executives and the promotion of their successors is viewed as a precursor to the eventual ascension of Mark Fields as CEO.

The Dearborn automaker said Tuesday that top labor negotiator Marty Mulloy, design chief J Mays and North American manufacturing chief Jim Tetreault all will retire Jan. 1, although they all are in their 50s. The reshuffling follows the retirement in September of Ken Czubay, Ford's marketing and sales vice president.

Moving up are Moray Callum, the new vice president of design; Bruce Hettle as North American manufacturing chief, and Bill Dirksen as vice president of labor affairs.

"I think the main thing behind this is Mark Fields is putting his stamp on the organization," said Michelle Krebs, senior analyst for Edmunds.com.

"This is a huge change. It covers manufacturing, labor relations and design," Dave Sullivan, an automotive analyst with Auto Pacific, said of the executive retirements. "All of these are core characteristics of the entire company."

Mulloy, Tetreault and Mays each worked in the automotive industry for more than 30 years, but they are at least nine years younger than current CEO Alan Mulally, who is 68.

Earlier this year Ford's board of directors promoted Fields from president of the Americas to chief operating officer, a step regarded as a strong signal that he is likely to succeed Mulally, who has said he wants to served through 2014 at least.

Mulally, who still owns a home in the Seattle area, has been mentioned as a possible successor to Microsoft CEO Steve Ballmer, 57, who plans to step down in the next year. Last month, Mulally evaded direct questions about talks with Microsoft and would only say that the succession plans at Ford have not changed.

Ford spokesman Jay Cooney said that the retirement announcements have nothing to do with Mulally's eventual retirement. "This is a planned and orderly transition, underscoring that our succession planning process is work! ing well."

Mulloy, 57, led contract negotiations with the UAW in 2007, 2009 and 2011. UAW Vice President Jimmy Settles, who leads the union's Ford department, described Mulloy as a problem-solver and a man of his word.

Mulloy grew up in Gary, Ind., with a father who was a millworker at U.S. Steel for 45 years.

"He understood working people. He really, really understood them," Settles told the Free Press. "Sometimes it is difficult for us in the union to applaud company people because they are supposed to be adversaries, but it is very difficult for me to give any negatives about Marty."

Mays, 59, was vice president and chief creative officer. One of his crowning achievements is the elegant new styling of the current Ford Fusion that some have likened to an Aston Martin. He was also a leading designer of Volkswagen's revived Beetle before he came to Ford.

Tetreault, 58, was vice president of North America manufacturing and oversaw the recent expansion of several assembly plants to meet increased demand for certain vehicles.

"Jim's strong leadership and attention to detail will be missed," Joe Hinrichs, Ford's president of the Americas, said in a statement. "He has brought out the best in people and in our global manufacturing process across two continents."

Krebs said Ford is blessed with a deep bench of talented executives.

Callum was executive director of design, Hettle was was executive director, global vehicle operations manufacturing engineering and Dirksen was executive director of U.S. labor affairs.

Dirksen steps in as the UAW is preparing to elected a new president in 2014. Dirksen played a key role in 2011 contract negotiations with the UAW. He will lead negotiations in 2015.

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