Petersen Retiring as Chairman of Ford : Industry: The promotion of Vice Chairman Harold Poling to the post is something of a surprise.

Ford Motor Co. Chairman Donald Petersen today announced that he is retiring March 1. He will be succeeded by Vice Chairman Harold Poling.

The move was something of a surprise given that Allan Gilmour was recently promoted to the No. 3 spot at Ford and was mooted as a possible choice to take over the helm. Gilmour had been given much credit for masterminding Ford’s recent earnings surge.

Petersen, 63, has been chairman of the nation’s second-largest auto maker since Feb. 1, 1985.

During Petersen’s tenure, Ford’s profits rose to record levels surpassing those of archrival No. 1 General Motors Corp. and Ford’s U.S. market share grew considerably.

Poling, who turned 64 last month, became vice chairman two years ago and has been chief operating officer since the day Petersen became chairman and chief executive officer. Poling said he will hold the chairmanship for three years.

At a news conference, Ford officials said they are working toward an orderly transition of power as the auto maker seeks to maintain its industry-leading growth in profits and sales.

His voice breaking with emotion, Petersen said, “Ten years are up, and it’s time to repot myself.

“This is not going to be anything in the way of a significant change,” Petersen said, because he had been working closely with Poling in the past few years.

“I think that it’s time for me to make a change in my life,” Petersen told reporters. “I plan to slow down substantially for the rest of 1990.”

Chairman-designate Poling said the biggest challenge Ford faces during his term will be to deal with excess production capacity in the U.S. auto market, increased competition from rivals and potential new government regulations on emissions and fuel consumption.

Petersen said he has not decided whether he will stay on the Ford board of directors after his retirement.

He said his top achievement at Ford was changing the company to a less-bureaucratic and more consensus-oriented organization.

Succeeding Poling as chief operating officer will be Philip E. Benton Jr., president of the Ford Automotive Group. Executive Vice President Gilmour will follow Benton as head of the company’s vehicle-making organization.

Petersen said Executive Vice President Stanley Seneker will remain as chief financial officer of the company.

In 1980, the first year that Petersen served as president of the auto maker, Ford lost $1.5 billion. Last year, Ford reported a profit of $5.3 billion.

Petersen joined Ford in 1949 and served extensively in the company’s vehicle planning and marketing operations before becoming Ford’s president in March, 1980.

Poling, who joined Ford in 1951, was the company’s president from February, 1985, until he was appointed vice chairman in 1987. The president’s title was dropped at that time.

Roger Smith, chairman of industry leader General Motors Corp., is expected to retire in 1990. Chairman Lee Iacocca’s contract expires in 1991 with No. 3 Chrysler Corp.

The United Auto Workers union had no immediate comment on the changes at Ford.