Ford Vows to Be Environment-Friendly
Presiding over the Ford Motor Co. annual meeting for the first time, Chairman William Clay Ford Jr. on Thursday outlined a vision of creating the leading automotive consumer concern, one that is both highly profitable as well as socially and environmentally responsible.
The shareholders gathering, held at the refurbished Detroit Opera House, was tinged with historical significance. It marked the first time since 1979, when Ford’s uncle Henry Ford II retired, that a family member has chaired the company’s annual meeting.
Founded in 1903 by inventor Henry Ford, the company is an American institution that stands out not only for its products but also for its colorful past. Although a public company, it is still controlled by the extended Ford family, which holds 40% of its voting stock.
After 20 years spent working his way up in the company, William Ford, 42, took over as chairman in January from the retiring Alex Trotman. At the same time, the board named Jac Nasser, a Lebanon-born, Australia-reared dynamo, to run day-to-day operations as president and chief executive.
Though clearly in control, Ford has remained largely in the background since ascending to the top, leaving Nasser to be the public face of the auto maker.
At times stiff and seemingly uncomfortable in public, Ford appeared more at ease Thursday, conducting the company’s business with a gentle but firm hand. He handled questions and criticism from corporate gadfly Evelyn Y. Davis with aplomb and good-naturedly laughed when she referred to him as “Your Majesty, King William.”
Ford finds himself in control of the world’s No. 2 auto maker as it is riding high. Its costs are down $5 billion in the last two years, while sales and profit are at record levels.
The new chairman and Nasser have moved quickly to put their mark on the company. The first 4 1/2 months of their reign have been a whirlwind of activities.
Ford acquired Volvo Cars for $6.4 billion. It stepped up a program to acquire and modernize dealerships in some markets. It is entering new businesses, including buying a major service operation in Europe and launching a global recycling operation. It is rushing new products to market.
“If the past 100 days are any indication, the future of Ford will be characterized by speed, transformation, teamwork and growth,” said Nasser, speaking to more than 600 shareholders in Detroit and an audience plugged in over the World Wide Web.
Much of the change can be seen in its “green” initiatives, which are being personally pushed by Ford, who prides himself on being a lifelong environmentalist.
Ford and Nasser began the meeting by driving onstage in a Think, a lightweight, plastic-bodied, battery-powered car that the company will begin selling this year in Scandinavia.
Ford said that although the company is driven by the need to increase shareholder returns, it believes that can be done in a socially responsible way. He said extensive consumer research worldwide finds that consumers, especially younger ones, increasingly demand corporate responsibility in anything that affects the quality of their lives.
The environment is clearly such an issue. Ford Motor says it is the only auto maker to have all its plants certified to meet international management standards that regulate air, water, chemical handling and recycling.
Still, Ford Motor’s environmental record is under attack on several fronts. At the annual meeting, several stockholders charged that the company is not living up to its responsibility to curb gases linked to global warming. But their proposal to require disclosure about greenhouse gas emissions and the firm’s lobbying efforts to block global warming regulations was overwhelmingly defeated.
The company is also the target of environmentalists’ barbs because it is the nation’s leading seller of low-mileage trucks. One shareholder noted that Ford Motor’s fuel economy for its entire fleet of vehicles is the highest of any auto maker that sells cars in the U.S.
Ford Motor’s recent unveiling of the Excursion, the largest sport-utility vehicle ever, has been lambasted by environmental groups. The vehicle carries nine passengers and gets as little as 10 miles per gallon.
William Ford, however, defended the Excursion as meeting the needs of a small group of consumers. He also pointed out that the SUV has been classified as a low-emissions vehicle and uses more recycled parts than its competitors do.
Shares of Detroit-based Ford Motor declined $1 to close at $63.50 on the New York Stock Exchange.
