Keeping It in the Family : William Ford Jr. Moves Into Position to Run Auto Maker
In a surprise move that makes a Ford family member the front-runner to eventually assume the top job at Ford Motor Co., a great-grandson of founder Henry Ford was named Thursday as chairman of the auto maker’s powerful finance committee.
William Clay Ford Jr., 37, will take the post Jan. 1 when it is vacated by his father William Clay Ford Sr., the 69-year-old brother of the late Henry Ford II.
The step puts a young member of the Ford clan in position to oversee the company’s purse strings and to prove his mettle as a finance manager to top auto executives, Wall Street and the family, which controls 40% of the company’s stock.
A Ford family member has not run the company since 1980, when Henry Ford II stepped down as chairman. Before that, a Ford had headed the firm since its founding in 1903.
Under pressure from the Ford family, the company has been grooming both Edsel B. Ford II, 46, and William Ford Jr. for senior management jobs. Industry experts speculate that one of the Fords is likely to succeed Alex Trotman when he retires as chairman and chief executive at the end of the decade.
Trotman said the board considered both Fords for the finance committee position, but he would not comment directly on why William was chosen over his older cousin.
“Bill has a great deal of experience on both sides of the Atlantic,” Trotman said. “He knows how Ford ticks. He is well qualified for his new job.”
“It’s clearly a win for William Jr. and it’s a setback for Edsel,” said Eugene Jennings, professor emeritus of business management at Michigan State University.
The two Fords, both of whom are directors and finance committee members, downplayed the rivalry, however.
Edsel Ford, a vice president and son of Henry Ford II, will continue as chief executive of Ford Motor Credit Co., while William will resign as vice president of Ford’s commercial truck vehicle center to take on his new finance duties.
“This suits Billy, this suits me,” Edsel said. “They are complementary roles for both of us.”
William agreed, saying that not too much should be read into his promotion. “I don’t think this precludes anything or includes anything,” he said when asked if he hoped the move would lead to the Ford chairmanship.
Speculation that a Ford family member would ascend to the chairmanship of Ford has abounded since 1989 when Edsel Ford publicly complained that he was being passed over for important managerial positions.
The spat led that year to the early retirement of Donald Petersen as chairman and an effort to provide a clear path of advancement for the two young Fords.
“Eventually, one of these two gentlemen will run the company,” said John Casesa, an analyst with Wertheim Schroder, a New York brokerage. “It still is a family-run company.”
The finance committee has been chaired by a Ford since 1979, when Henry Ford II took the job. With his death in 1987, brother William Ford Sr. assumed the post and has held it ever since.
William Sr. is stepping down now because he will be 70 soon and wanted to ease his way into retirement. But he will remain on Ford’s board and continue as a consultant to Jaguar. He also owns the Detroit Lions football team.
The finance committee, which includes Trotman, two vice chairmen, chief financial officer and three Fords, is the board’s most powerful because it directs the company’s financial policies and affairs.
William Jr., a company director since 1988, was also named to the board committee that hires directors and key managers. He will give up his operating position with Ford in order to avoid any conflict of interests.
But he plans to stay involved with the company’s day-to-day affairs and to take on special civic and government assignments for Trotman. “I plan to be extremely active in this role,” he said.
Jennings said William’s promotion gave him a leg up over Edsel because the chairman of the finance committee is considered a good training ground for the company’s top spot.
“If he does well, I could see Willie Boy rise to the top,” he said. “He’s probably one of the three most important people in Ford at this time.”
Jennings, who has studied Ford and other auto makers for 35 years, said William is regarded as more stable, organized and trustworthy than Edsel. “He is the more professional manager,” he said.
William, who joined Ford in 1979, has held various position in product planning, assembly, advertising and marketing. He worked in Europe, including a stint as chairman of Ford Switzerland. He also served in truck operations and as general manager of the climate-control division.
Edsel Ford, named after his grandfather, who served as Ford president, joined Ford in 1974 and has extensive marketing and finance experience. He served as manager of Ford of Australia and marketing manager of Lincoln-Mercury and has headed Ford Credit since 1991.
The promotion comes as Ford is in the midst of a global reorganization designed to lower production costs and reduce the time needed to design and build new models. The company earned $2.6 billion on sales of $33.7 billion in the first six months of 1994.
Rising Son at Ford
William Clay Ford Jr. emerged Thursday as a leading contender to head the Ford Motor Co. when the current chairman, Alex Trotman, retires, probably at the end of the 1990s. A Ford family member has not head the auto maker since 1980. Here are the Ford family members that have played significant roles in the company:
Henry Ford (1863-1947): Inventor and industrialist. Founded Ford Motor Co. in 1903. Developed mass production system. Produced the Model T and Model A. Became autocratic and antiunion in his later years.
Edsel B Ford (1893-1943): Only son of Henry Ford. Headed company from 1919 to 1943. A good manager who tried to modernize company but was thwarted by his father’s cronies.
Henry Ford II (1917-1987): Reestablished family control and restructured the company. Brought in Whiz Kids who instituted financial controls. Introduced Thunderbird and Mustang but was responsible for Edsel debacle. Expanded Ford globally. Lived a jet-set lifestyle and suffered scandalous divorces. Hired and fired Lee Iacocca.
Benson Ford (1919-1978): Ran Lincoln-Mercury division from 1948-1956. Later worked in dealer relations.
William Clay Ford (1925- ): Ran Continental division before it was merged with Lincoln division. Oversaw Continental Mark II. Removed himself from operations after company sold shares to the public. Became chairman of finance committee after Henry Ford II’s death in 1987.
Edsel B. Ford II (1948- ): Joined company in 1984. Has managed Ford’s operations in Australia and been marketing manager of Lincoln-Mercury. Publicly complained in 1989 he was being overlooked for managerial advancement, a dispute that led to chairman Donald Petersen’s early retirement. Aspires to be head company. Now chief exec of Ford Motor Credit.
William Clay Ford Jr. (1957- ): Leading candidate to eventually head company after being promoted Thursday to head the company’s powerful finance committee. Joined company in 1979 and has held positions in product planning, assembly, advertising and marketing. Also headed operations in Switzerland and company’s climate-control division.
