‘Environmental Ethic’ Planned for Ford Motor
Declaring himself a car guy and environmentalist, William Clay Ford Jr. said Wednesday that one of his chief goals as chairman of Ford Motor Co. will be to make it the world’s most environmentally friendly auto maker.
In his first major speech since being tapped Sept. 11 as chairman of the company his great-grandfather founded, Ford vowed to instill a “new environmental ethic” at the company.
Ford, long active in environmental issues and owner of an electric-powered Ranger pickup, said a dedication to environmental leadership will not compromise shareholder or consumer interests.
“There’s no conflict between doing the right thing and the bottom line,” he said at an environmental briefing with reporters. “I don’t see a conflict between shareholder value, customer value and social value.”
His remarks come as auto and oil industry leaders are showing greater willingness to address global environmental concerns. Still, the statements are being viewed with guarded optimism by environmental groups.
“It’s too early to tell if Mr. Ford deserves to be called Mr. Green,” said Jason Mark, transportation analyst for the Union of Concerned Scientists. “Actions speak louder than words. We will be watching closely.”
Like other major auto makers, Ford is increasingly aggressive in touting its environmental initiatives, including sales of alternative-fuel vehicles, investment in fuel cells and moves to lower truck emissions.
Where Detroit auto executives are typically seen as obstinate foes of environmental regulation--bitterly resisting new emissions controls--the 41-year-old Ford proudly boasts of his anti-pollution activities.
An avid outdoorsman, Ford volunteered for clean water projects while in college. He has served on the boards of environmental groups such as the Nature Conservancy and Conservation International.
For the last several years, he has headed the auto maker’s environmental and public policy committee, and he created an environmental strategy department to oversee recycling and manufacturing operations.
“This isn’t a passing fad for us,” Ford said. “It’s a key strategic direction.”
When Ford takes over as chairman Jan. 1, it will mark the first time a Ford family member has held the top post since 1980, when his uncle Henry Ford II retired. The family controls 40% of the company’s voting shares.
In succeeding the retiring Alex Trotman as chairman, Ford will set strategic policy for the world’s No. 2 auto maker. Day-to-day operations will be handled by Jacques Nasser, who will assume Trotman’s duties as chief executive and president.
Echoing Ford’s environmental statements, Nasser said the company plans to be a leader in clean vehicle initiatives and to introduce new technology before it is mandated by regulators.
“In the end, this is an area where a competitive advantage gives us an edge and will help us grow,” he said.
Environmental groups express both hope and skepticism about statements from company officials. Mark noted, for instance, that Ford sells more trucks than any other auto maker and that those vehicles on average emit one-third more greenhouse gases than passenger cars.
However, others note that Ford has moved more quickly than some competitors to add emissions-reducing technology to vehicles. In January, Ford announced it would install advanced catalysts in 1999 models that make its sport-utility vehicles as clean as most passenger cars.
Dan Becker, director of the Sierra Club’s global warming project, points out that Ford’s incoming chairman last October made a notable speech at an automotive engineering seminar warning auto makers not to ignore the global warming issue. He also raised concerns about over-dependence on low-mileage sport-utility vehicles.
“His statements are music to our ears,” Becker said.
In his address Wednesday, Ford called his great-grandfather Henry Ford, the company founder, an environmental pioneer who had a vision of creating technology to benefit humanity and the natural world. While that vision has sometimes been forgotten, he said, today the company’s leaders “realize that preserving the environment is not only the right thing to do, it’s the best thing to do from a long-term business perspective.”
Ford spends more than $500 million a year on environmental research. Among its major initiatives are developing advanced catalysts and sophisticated electronic controls that lower emissions. One major obstacle is sulfur content in gasoline, which reduces catalyst performance. California already mandates reduced-sulfur fuel, and Ford and other auto makers are pushing for the oil industry to provide the cleaner fuel nationwide.
Ford also is moving forward on developing fuel-cell vehicles in a partnership with Daimler-Benz and Ballard Power Systems. Fuel cells combine hydrogen and oxygen to produce electricity and water. Ford plans to begin testing a prototype hydrogen fuel-cell vehicle early next year.
To improve fuel economy, Ford is looking for ways to reduce vehicle weight. It could announce as early as today plans to mass-produce 300,000 all-aluminum vehicles beginning in 2002, Bloomberg News Service reported.
