Lewis Booth and Derrick Kuzak to retire

[PREMiERdrum]

Ford CFO Lewis Booth and Global Product Chief Derrick Kuzak to Retire; Veteran Executives Named as Successors

 

* Lewis Booth, executive vice president and chief financial officer, has elected to retire effective April 1, after a 34-year career

* Derrick Kuzak, group vice president, Global Product Development, has elected to retire effective April 1, after a 33-year career

* Booth will be succeeded by Bob Shanks, currently vice president and Controller

* Kuzak will be succeeded by Raj Nair, currently vice president, Engineering, Global Product Development

 

 

DEARBORN, Mich., Feb. 9, 2012 – Ford Motor Company today announced that Lewis Booth, executive vice president and chief financial officer, and Derrick Kuzak, group vice president, Global Product Development, have elected to retire effective April 1. Each has served the automaker for more than 30 years.

 

Booth, 63, will be succeeded by Bob Shanks, who is currently vice president and Controller. Kuzak, 60, will be succeeded by Raj Nair, who is currently vice president, Engineering, Global Product Development. Shanks and Nair assume their new positions April 1.

 

In addition to these changes, Ford is announcing the following moves, also effective April 1:

 

 

* Stuart Rowley, 44, currently chief financial officer, Ford of Europe, has been elected a company officer and will succeed Shanks as vice president and Controller

* Hau Thai-Tang, 45, currently executive director, Global Product Programs, has been elected a company officer and will succeed Nair as vice president, Engineering, Global Product Development

 

 

“Lewis Booth and Derrick Kuzak represent the very best of Ford and our culture and built a legacy of leadership, integrity and commitment to excellence that will benefit us for years to come,” said Bill Ford, Ford’s executive chairman. “Lewis and Derrick were absolutely integral to the comeback of Ford and they are retiring with our deepest respect and gratitude.”

 

 

Lewis Booth

 

Bob Shanks

 

Stuart Rowley

Click image for hi-res

Finance Changes

Booth, a native of Liverpool, England, who was trained as both an accountant and engineer, rose up through the company in a series of financial and operational jobs, including working in Ford’s product development, manufacturing and vehicle operations departments in North America. Booth went on to lead operations for Ford in South Africa and Mazda before being tapped to head Ford of Europe and the Premier Automotive Group, Ford’s former family of European premium brands.

 

In late 2008, a week after the collapse of Lehman Brothers triggered a financial crisis, Booth returned to Dearborn as the company’s chief financial officer.

Under his leadership, the Ford treasury and finance teams executed a series of complex moves to shore up Ford's liquidity and reduce debt. Over the last three years, Ford has significantly strengthened its balance sheet, improving its net cash level by $20 billion. The company also has seen its credit rating improve six notches to one level below investment grade. In addition, the dividend is being restored and the company has begun derisking the pension plans.

 

“Lewis brought to his role as chief financial officer a unique blend of financial and operational experience,” said Alan Mulally, Ford president and CEO. “He has helped fully implement the One Ford plan by supporting a fully-funded product plan and delivering a profitably growing Ford for the good of all of us.”

 

Booth began his career with Ford in 1978 as a financial analyst in Product Development for Ford of Europe. Since that time, he has been known not only for his financial and operational expertise but also for his passion for people and products.

“During my 34 years at Ford, I’ve had the opportunity to lead the company’s operations on three continents as well as head up our talented Finance team,” Booth said. “It’s been an incredibly rewarding journey. I’m honored to have had the privilege to play a key role in the company’s turnaround and to have worked with outstanding people in the Ford team around the world.”

 

In his new role, Shanks, 59, will assume direct responsibility for the company’s financial operations, including the Controller’s Office, Treasury and Ford Motor Credit Company. He will report to Mulally.

 

“Bob is a terrific leader,” Mulally said. “He has been a wonderful partner to the leadership team in the implementation and institutionalization of the One Ford plan. His deep experience in finance, combined with his global perspective will allow us to continue to deliver an exciting profitably growing Ford.”

 

Since joining Ford as an accounts receivable analyst in 1977, Shanks has held a variety of leadership positions including serving as Controller for The Americas, head of Operations Support, Finance and Strategy for Ford of Europe and Premier Automotive Group (PAG), chief financial officer for PAG and chief financial officer for Mazda Motor Corporation. In addition to other finance positions within Mazda, North America and South America, he led the finance function in Taiwan’s Ford Lio Ho Motor Company and business development activities in Ford's Asia-Pacific operations.

 

Shanks holds a bachelor's degree in foreign service from Georgetown University and a master's degree in international management from the American Graduate School of International Management.

 

Rowley joined Ford in 1990 as a financial analyst for Ford of Britain and has served as the CFO and Vice President Strategic Planning of Ford Europe since August 2010. Previously, he served as CFO and Senior Vice President of Volvo Car Corporation and as Vice President Finance Ford Australia in addition to finance management positions in the Philippines, North America and Europe.

 

 

Derrick Kuzak

 

Raj Nair

 

Hau Thai-Tang

Click image for hi-res

Product Development Changes

Kuzak, a native of Michigan, led the creation of the One Ford global product cycle plan, defining the company’s vehicle DNA for Ford and Lincoln, transforming Ford’s global product development system, leading platform consolidation across key global vehicle segments, and driving the company’s fuel efficiency, technology, and quality leadership to unprecedented heights.

 

“Derrick’s commitment to product excellence and continuous improvement has allowed Ford to deliver to our customers the industry’s freshest showroom with a complete family of best-in-class products,” said Mulally. “At the same time, he prioritized the development of the next generation of talented, experienced product leaders who will continue to deliver for our global customers.”

 

Kuzak was appointed to his current role in December 2006. Before serving as global product development chief, Kuzak served in a variety of leadership positions in Europe and The Americas.

 

He began his career with Ford in 1978 as a research engineer. He holds both bachelor’s and master’s degrees in electrical engineering from the University of Detroit, where he also earned a doctorate in systems engineering.

 

In 2010, Kuzak also was elected a member of the National Academy of Engineering, the highest and most prestigious award in the engineering community.

 

“It has been an honor to work with so many talented men and women to develop for customers so many meaningful vehicles during the past 33 years,” Kuzak said. “The most rewarding accomplishment is to see all of our teams working together around the world to deliver vehicles in each region that are now consistently great to look at, great to sit in and fun to drive – with bold, emotive designs and fuel economy as a reason to buy.”

 

In his new role, Nair, 47, will assume direct responsibility for all aspects of Ford Motor Company’s product development system. He will report to Mulally. As Kuzak did before him, Nair also will report to Mark Fields, executive vice president of the company and president of The Americas for North American product development.

 

“Raj is the right leader to build on what has been accomplished to date,” Mulally said. “He understands the potential of moving to global platforms with our One Ford plan and he is committed to continuing to serve the world’s customers with best-in-class cars and trucks. In addition, Raj understands how to lead skilled and motivated professionals and further encourage working together around the world.”

 

Since joining Ford as a Body and Assembly launch engineer in 1987, Nair has held a variety of leadership positions in Europe, Asia Pacific Africa and The Americas, including vice president of Operations for Ford’s Asia Pacific and Africa region, executive director of Commodity Business Planning, executive director, North American Product Development and director of New Model Programs for Advanced & Manufacturing Engineering.

 

Nair holds a bachelor’s degree in mechanical engineering with an automotive specialty from Kettering University in Flint, Mich., and was named the recipient of the 2007 Kettering Alumni Achievement Award in Engineering.

 

Thai-Tang joined Ford in 1988 as a college graduate trainee. In addition to serving in his current role since January 2011, Thai-Tang previously served as the director of product development for Ford South America as well as the director of Advanced Product Creation and Special Vehicle Teams (SVT). Prior to that, he was the chief nameplate engineer for the Ford Mustang. His Ford experience also includes an assignment in Germany, as well as working with Ford Racing as part of the company’s CART program. He holds a Bachelor of Science degree in mechanical engineering from Carnegie-Mellon University and a master’s degree from the University of Michigan.

 

LINK - Ford Media

[NickF1011]

Good to see Hau Thai-Tang continuing to move up. Booth and Kuzak will be missed though. They were both pretty instrumental in righting the ship over the past several years.

[FordBuyer]

Good to see Hau Thai-Tang continuing to move up. Booth and Kuzak will be missed though. They were both pretty instrumental in righting the ship over the past several years.

 

 

Kuzak is only 60, 6 years younger than Mulally. Wonder if he is falling on his sword for the MFT and Focus DCT problems. Or Kuzak figures he has risen as high as possible in Ford's executive glass ceiling and wants to do other things. Anyway, surprised he is leaving, but on second thought not surprised after Ford falling so far in perceived quality.

[Harley Lover]

Kuzak is only 60, 6 years younger than Mulally. Wonder if he is falling on his sword for the MFT and Focus DCT problems. Or Kuzak figures he has risen as high as possible in Ford's executive glass ceiling and wants to do other things. Anyway, surprised he is leaving, but on second thought not surprised after Ford falling so far in perceived quality.

 

Nominated for dumbest post of the month.

[PREMiERdrum]

From Autoblog

 

Mulally said Thursday with a snicker, "I looked over the press release very clearly and saw that my name was not among those retiring."

[SoonerLS]

* Hau Thai-Tang, 45, currently executive director, Global Product Programs, has been elected a company officer and will succeed Nair as vice president, Engineering, Global Product Development

So much for Thai-Tang's "demotion" to SA over the S197 Mustang IRS "Debacle"... Having heard from two engineers who've worked with him in the past, it sounds like it couldn't have happened to a better guy, so good for him.

[mackinaw]

Kuzak is only 60, 6 years younger than Mulally. Wonder if he is falling on his sword for the MFT and Focus DCT problems. Or Kuzak figures he has risen as high as possible in Ford's executive glass ceiling and wants to do other things. Anyway, surprised he is leaving, but on second thought not surprised after Ford falling so far in perceived quality.

 

Dude, the guy's worked at Ford for 34 years! You think he's going to work forever?

[SoonerLS]

Kuzak is only 60, 6 years younger than Mulally. Wonder if he is falling on his sword for the MFT and Focus DCT problems. Or Kuzak figures he has risen as high as possible in Ford's executive glass ceiling and wants to do other things. Anyway, surprised he is leaving, but on second thought not surprised after Ford falling so far in perceived quality.

I'm told that he has personally accepted responsibility for the MFT problems, but the rumor is that the primary reason he's leaving is health issues. IMHO, there's certainly no way that Mulally would force him out if he'd accepted the responsibility for the problems; he'd only do that if Kuzak had been dodging responsibility and not working on fixing them.

[Deanh]

anyone else notice the date...April 1st..........we could all be ebing PUNKED!

[RichardJensen]

Not surprised by this. It's a good time for Kuzak to retire, as the bulk of the work on One Ford is done, and the past few years have probably been very taxing on him.

[jpd80]

Not surprised by this. It's a good time for Kuzak to retire, as the bulk of the work on One Ford is done, and the past few years have probably been very taxing on him.

 

And also we don't know anything about their personal situation or their families needs either....

Maybe both have earned plenty in bonuses and stock and now feel it's time for a change of pace or it could have been

gentle persuasion, make me a great offer and I'll take early retirement and that will allow new blood to come through.

Maybe golden parachute versus falling on sword?

Edited February 9, 2012 by jpd80

[aneekr]

Kuzak is only 60, 6 years younger than Mulally. Wonder if he is falling on his sword for the MFT and Focus DCT problems. Or Kuzak figures he has risen as high as possible in Ford's executive glass ceiling and wants to do other things. Anyway, surprised he is leaving, but on second thought not surprised after Ford falling so far in perceived quality.

Good points there, FordBuyer. Maybe a role in academia is next for Dr. Kuzak? He has long supported the College of Engineering & Science at his alma mater, University of Detroit Mercy, and serves on the institution's Board of Trustees. With his wealth of engineering experience, Dr. Kuzak would be a worthy addition as a faculty member at the school.

[BORG]

Ford is in a good position right now to retire all the hardworking execs that moved the company to this point. It's particularly important to line-up the new execs before Mulally departs as well.

[630land]

"Wonder if he is falling on his sword for the MFT and Focus DCT problems."

 

What problems? Some are mad since they expected Focus to be #1 selling car this year, so they say it's 'problematic'. But January sales were good, especially in California and Coastal states. Buyers there are picky, and if Ford can get more #'s there, they can make profits. Middle America buys big whenever gas prices go down, anyway. And so what about not being #1? Selling mostly to Michigan auto industry employees at losses is old think.

[Captainp4]

And also we don't know anything about their personal situation or their families needs either....

Maybe both have earned plenty in bonuses and stock and now feel it's time for a change of pace or it could have been

gentle persuasion, make me a great offer and I'll take early retirement and that will allow new blood to come through.

Maybe golden parachute versus falling on sword?

 

 

It does seem a little strange that they're both retiring at the same time, makes me think, you like said 'gentle persuasion' or being forced out for one reason or another. Though on the other hand, they could just want to move on like you said as well. Probably one of those things we'll never know.

[jpd80]

It does seem a little strange that they're both retiring at the same time, makes me think, you like said 'gentle persuasion' or being forced out for one reason or another. Though on the other hand, they could just want to move on like you said as well. Probably one of those things we'll never know.

By mutual agreement then, Ford wants to move on and both me are happy to take retirement,

so make sure the figures are right.and it's a done deal.

[rkisler]

Ford is in a good position right now to retire all the hardworking execs that moved the company to this point. It's particularly important to line-up the new execs before Mulally departs as well.

 

Yes, of course that's what's happening.

 

The two positions in the recent retirement notice of course have some connection, but the expertise is largely independent. Both executive positions can be replaced without any real disturbance. And I don't believe either is being pushed out; both have served admirably. Believe me, their retirements with an extra package they got, won't leave them living in a trailer park in Florida.

 

I would put the timing of Mullaly leaving at 2 years (3 years max), and a very, very high probability that Mark Fields will take his job. I'm assuming he has already have been told the job is his.

 

So, in the meantime this gives this new team 2 years to get settled together, although there could be some other moves in upper management leading up to that event..

 

To me the big question is not who is going to replace Mullaly, but who will move into Mark Fields' slot.

 

Bob Shanks will make an excellent replacement for Lewis Booth. The CFO in Ford is, of course, a very powerful position. In addition to handling the more mundane parts of the job (accounting, systems, financial reporting, stockholder relations, treasury), he/she is really the chief strategic advisor to the CEO. Good judgment comes from basic smarts and lots of experience in different jobs which allows one to make an almost instant assessment of a particular situation, but also the ability to follow up with hard facts drilled down to minute detail if necessary. Bob will do fine, but his background has been totally in Finance and Strategy with no operating jobs, so I think there is very little chance that he ultimately would be lined up for the CEO job.

 

So now you still have Farley and Henrichs with Raj Nair poking up a bit but there are others who might rise into contention also. If I were to speculate, I'm thinking that Farley is really good at Marketing, but not so sure how he is in operations. At any rate, these guys are part of the next wave after Mark and now have been joined by Raj.

 

Raj Nair has risen rapidly. He came up through Manufacturing, and in one of his previous jobs as Director, New Model Programs he was in charge of all of the vehicle launches. Tough job. From the manufacturing side, you really have to push hard with everyone as you approach Job 1 to ensure high quality on time. Given his rapid rise, I'm sure he's getting results.

 

This does line up Raj for other jobs after a couple of years. But I think he would have to take another big job before running the Americas (like Europe). But that's OK, because Hau Thai-Tang is now lined up right behind him and could step in or maybe Paul Mascarenas who is Ford's Chief Technical Officer would be appointed to replace him. Either would be good. Hau is extremely technically capable, a really nice guy, and a good team leader. Paul also has lots of experience in PD and a great technical background.

 

One intruiging idea I've seen is that Ford could potentially create a COO position into which the heir would move, which would then allow other positions to be aligned. Then when Mullaly leaves, the COO is appointed CEO, and the COO position eliminated. Not sure if it will happen this way, but it's an interesting thought.

 

Here are some other things I'm seeing:

 

1. One of the most important legacies of these gentlemen is getting rid of the "Scream and Shout" school of management which was pervasive inside Ford. Leaders like Jac Nasser who would set up opposing teams to work on the same problem without informing either of the teams what he was doing (ummm, more than a bit devisive) and many others I don't care to name. They were all arrogant and abusive. Either they felt this was the most effective way to manage, or they couldn't handle the stress, or they were covering up the fact that they had a small penis. Whatever it was, it wasn't fun working for these bozos (think of the chimps in the Career Builder ads). That doesn't mean that Ford's present management is not tough, but Mullaly has brought a style of more open, honest management with realistic goal-setting that has really benefited Ford.

 

2. Everyone in this management team has been through the tough times and the change in strategic direction. There won't be any culture shock regardless of who is appointed.

 

3. As we've seen, the stock market can be illogically nervous over Ford management changes, and certainly when Mullaly retires, they will wring their skirts nervously, and sell Ford stock so they can put their money under the mattress again. Ford is obviously taking these management succession steps carefully to ensure the shock is minimized when Mullaly leaves. That's why I think the idea of appointing the heir apparent to a COO position might be a good thing to get everyone used to the idea.

 

I want to put in a plug. I recently read Bill Vlasic's Once Upon a Car . I thought it was a good read, and gave some interesting insights into the personalities and actions of the senior management of the domestic auto manufacturers during their worst hours.

Edited February 10, 2012 by Austin

[03 LS]

"Wonder if he is falling on his sword for the MFT and Focus DCT problems."

 

What problems? Some are mad since they expected Focus to be #1 selling car this year, so they say it's 'problematic'. But January sales were good, especially in California and Coastal states. Buyers there are picky, and if Ford can get more #'s there, they can make profits. Middle America buys big whenever gas prices go down, anyway. And so what about not being #1? Selling mostly to Michigan auto industry employees at losses is old think.

The problems Ford itself already admitted while the die hard fans still refuse to acknowledge:

2011 Quality: plan - Improve, result - Mixed

[03 LS]

This does line up Raj for other jobs after a couple of years. But I think he would have to take another big job before running the Americas (like Europe). But that's OK, because Hau Thai-Tang is now lined up right behind him and could step in or maybe Paul Mascarenas who is Ford's Chief Technical Officer would be appointed to replace him. Either would be good. Hau is extremely technically capable, a really nice guy, and a good team leader. Paul also has lots of experience in PD and a great technical background.

Paul's already out. IIRC Raj took his old job when they made him CTO.

One intruiging idea I've seen is that Ford could potentially create a COO position into which the heir would move, which would then allow other positions to be aligned. Then when Mullaly leaves, the COO is appointed CEO, and the COO position eliminated. Not sure if it will happen this way, but it's an interesting thought.

They tried that already, with Scheeler (sp?) as COO in Jr's rein, with no apparent benefit/result. IMHO, COO normally oversees the whole company's operation, but in Ford's case, the FNA is far too big and far too important to not to report to CEO directly. If COO and pres. of the americas are not the same person, you will see confusion, friction, or both.

[RichardJensen]

Was HTT's 4 year run as head of smaller P&Ls (Brazil & subsequently SA) a test to see if he could be handed the Americas when Fields moves up?

[rkisler]

Was HTT's 4 year run as head of smaller P&Ls (Brazil & subsequently SA) a test to see if he could be handed the Americas when Fields moves up?

 

It's not a full test, but a toe in the water at an operating job. You really need to run Asia-Pacific/LA or Europe in total before taking over NA. Of course I've never been in this position, but I'm sure at the end of this type of assignment, there is an honest discussion of how well they did, and whether they liked it enough to see even bigger operating jobs in their future. Not everyone is cut out to run a total organization; it requires you to let go of your area of expertise (which is hard to do), to pick up a fresh understanding of other disciplines, and put a lot of trust in your direct reports and other key management members. And you have to deal with labor which is a big shock to some.

 

Plus, HTT just made VP, so he's lower on the pecking order than some of the other names like Farley or Henrichs.

[rkisler]

Paul's already out. IIRC Raj took his old job when they made him CTO.

 

They tried that already, with Scheeler (sp?) as COO in Jr's rein, with no apparent benefit/result. IMHO, COO normally oversees the whole company's operation, but in Ford's case, the FNA is far too big and far too important to not to report to CEO directly. If COO and pres. of the americas are not the same person, you will see confusion, friction, or both.

 

While I agree that Raj "ran around" Paul for Derrek's job, that still doesn't completely eliminate Paul for later consideration, but HTT would probably have the lead.

 

Yes, Nick Scheele was COO. But this is a different situaiton and a different cast of characters. If Ford NA were to report to a COO and the COO were Mark, then all is good. I don't think there would necessarily be any unmanageable friction. Suppose this overlap occurred for only one year and then Mark ascended to the throne. Ford NA head would still report to Mark. And a COO could allow Mullaly to start stepping out and delegating certain pieces to the discretion of the COO, easing the transition.

 

I dunno. Not saying it's going to happen, but it could work.

[RichardJensen]

It's not a full test, but a toe in the water at an operating job. You really need to run Asia-Pacific/LA or Europe in total before taking over NA. Of course I've never been in this position, but I'm sure at the end of this type of assignment, there is an honest discussion of how well they did, and whether they liked it enough to see even bigger operating jobs in their future. Not everyone is cut out to run a total organization; it requires you to let go of your area of expertise (which is hard to do), to pick up a fresh understanding of other disciplines, and put a lot of trust in your direct reports and other key management members. And you have to deal with labor which is a big shock to some.

 

Plus, HTT just made VP, so he's lower on the pecking order than some of the other names like Farley or Henrichs.

I can see that--although HTT did run Ford's South American operations, which would seem to be roughly on par with the Australia/Africa/Asia unit in size (excluding the Chinese JVs).

 

Also, I note that HTT is moving back into product development, so maybe he didn't want to continue down the P&L path, even if that means he tops out as head of PD, and not CEO.

Edited February 10, 2012 by RichardJensen

[rkisler]

I can see that--although HTT did run Ford's South American operations, which would seem to be roughly on par with the Australia/Africa/Asia unit in size (excluding the Chinese JVs).

 

Also, I note that HTT is moving back into product development, so maybe he didn't want to continue down the P&L path, even if that means he tops out as head of PD, and not CEO.

 

Possible. Derrek said he had his dream job, and didn't aspire to anything more. HTT might feel the same. Dunno.

[RichardJensen]

Possible. Derrek said he had his dream job, and didn't aspire to anything more. HTT might feel the same. Dunno.

If Ford's culture has changed to the extent that guys like Kuzak can follow their bliss without feeling pressure to jockey for the top slot, then I for one won't be complaining.