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Saturday, Sep. 12, 1998
Ford family member will succeed automaker's retiring chairman
Departing CEO led company to record profits driven by SUV boom
By JUSTIN HYDE
Associated PressDETROIT -- Alex Trotman, chairman, president and chief executive of Ford Motor Co., will retire Jan. 1 and will be succeeded as chairman by William Clay Ford Jr., the great-grandson of company founder Henry Ford.
Trotman, 65, has run the world's second-largest automaker since 1993, and has worked for the company for 43 years.
He had planned to retire at the end of 1999, but said today that the company had made more progress than expected on cost-cutting and global business plans and he offered to retire early.
In an expected move, the company's board of directors affirmed William Clay Ford Jr. as Trotman's successor as chairman. The board also chose Jac Nasser, who runs Ford's automotive operations, as president and CEO and made him a member of the board.
``Over these past several months, the board has discussed succession following my retirement and has concluded that the roles of the chairman and of the chief executive officer should be separated,'' Trotman said. ``Jac is already running the largest part of the company and, with Bill as chairman of the board, we have tremendous strength and continuity as we move forward.''
The company said Ford operations will report to Nasser. Trotman made $10.7 million in 1997 in salary and bonuses.
In morning trading on the New York Stock Exchange, Ford was up 12 and a half cents a share at $43.37 and a half.
During his tenure as chairman, Trotman led the company to record profits. One reason was the boom in sport-utility vehicles that began with the Ford Explorer. The company has earned $3.9 billion in the first six months of 1998.
``He's been very, very successful,'' said Maryann Keller, an analyst with ING Baring Furman Selz in New York. ``You can't possibly fault any part of Trotman's tenure as chairman.''
Trotman also started the Ford 2000 program, which combined Ford's separate operations and was aimed at boosting quality, lowering costs and quickening product development.
``I think he'll go down in history, because of the Ford 2000 program, as one of the great visionaries to lead Ford in its postwar history,'' said analyst Scott Merlis of Merlis Automotive International Inc.
Trotman was born in Middlesex, England, and raised in Scotland. He became an American citizen in 1975.
Hired in 1955 as a parts handler in Britain, Trotman hooked on early in product planning and had several winners to his credit in Europe that accelerated his career. Trotman served as chairman of Ford of Europe and president of Ford Asia-Pacific in Australia before becoming chairman and CEO.
William Clay Ford Jr., who currently heads the company's finance committee, is the first family member to run the company since Henry Ford II, who was chairman from 1945-1980. Henry Ford ran the company from 1908-18 and Edsel Ford ran it from 1918-1943.
The Ford family controls 40 percent of the company's voting shares.
William Clay Ford Jr. joined the company in 1979 and has held numerous positions. He is also vice chairman of the Detroit Lions football team, which is owned by his father.
``Ford Motor Co. is my heritage, and has always been part of my life,'' Ford said. ``I want to serve this company to the very best of my ability. I intend to lead the board in its support for the management running the business.''
Keller said it made sense for the company to separate the roles of day-to-day manager and long-term strategist between Nasser and William Clay Ford Jr.
``I think that, ironically, it probably removes some of the tension that's existed in the past between management and the Ford family,'' she said.Post your comments about local news eventsFront Page || Main Index || News || Business || Texas || South Texas Outdoors || Birdwatching || Sports || Entertainment || Selena || Education || South Texas Attractions || World Wide Web