Ford's Mark Fields promoted, could become CEO
Longtime Ford executive Mark Fields was named chief operating officer of the company on Thursday, putting him in line to replace CEO Alan Mulally as soon as 2015.
Mulally, 67, said Thursday that he plans to remain CEO at least through 2014, putting to rest - for now - the swirl of speculation about his retirement plans. Fields will become COO on Dec. 1.
Fields, 51, will lead day-to-day operations and head up the company's weekly business reviews with senior leadership. All of the company's business units will report to him. Mulally will lead the company's long-term strategy and product plans. He'll also support and mentor his new leadership team.
Ford announced the moves before the stock market opened Thursday. Shares fell nearly 2 percent on the news in early trading, but began climbing. They were down 1 percent to $11.02 in late morning trading.
Ford Executive Chairman Bill Ford said Fields has managed the transformation of the company's North American operations, which were losing billions of dollars when Fields took over that key region in October 2005. The company closed plants, laid off thousands of workers, streamlined its vehicle development process and introduced strong new vehicles like the Explorer and Fusion. Earlier this week, Ford reported a record $2.3 billion pretax profit in North America.
"I put Mark in that job seven years ago. The growth that we've all seen in him has been remarkable," Bill Ford said.
Ford's board decided on the leadership changes at its regular meeting Oct. 19. Bill Ford stopped short of saying Fields would definitely be named CEO when Mulally retires, but he did say he would prefer Ford's next CEO to come from inside the company.
"I always look at talent, not only internally but externally. But I'm very happy with the team we've put together," he said.
Joe Hinrichs, who is now head of Asia Pacific and Africa, will replace Fields as head of the Americas. Hinrichs, 45, who ran Ford's manufacturing operations before taking over Asia, has also been frequently mentioned as a successor to Mulally.
David Schoch, currently chairman of Ford China, will become head of the Asia Pacific region.
Stephen Odell, group vice president of Europe, was named executive vice president and president of Europe, Middle East and Africa. He also was among the candidates to succeed Mulally.
Jim Farley, who is currently head of global marketing, will also become the head of Ford's luxury Lincoln brand. Lincoln has been struggling in recent years, and Ford is trying to revive it with new products. It's also introducing Lincoln to China in 2014.
Ford hasn't had a COO since 2006, when former President and COO Jim Padilla retired. Mulally said he has never worked with a COO, either at Ford or at Boeing Co., where he spent 36 years before coming to Ford.
"I'm really looking forward to nurturing Mark and supporting this team," Mulally said.
Mulally is highly respected at Ford for saving the company from financial collapse. Shortly after Bill Ford hired him in 2006, he mortgaged all of Ford's assets for a $23.5 billion loan, paid for a restructuring and helped keep Ford out of bankruptcy protection. Ford reported its best-ever third quarter pretax profit of $2.2 billion earlier this week.
"We not only survived but we have created a company that is healthy and is growing and has a clear vision for the future," Mulally said in a phone call with analysts and media.
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