Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.ibd From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: \TITLE Date: Fri, 13 Nov 92 13:07:19 EST Message-ID: <7.1992Nov13.130720@AmeriCast.com> 11/13/92 TITLE #m#gmrama#m#Ford Names Management Team For Future Trottman, Gilmour Have Inside Track To Chairman's Post Paul A. Eisenstein In Dearborn, Mich. Three top executives will divide the duties of retiring Ford Motor Co. President Philip E. Benton, setting up what the automaker hopes will be an orderly transition next year when Chairman Harold Poling is expected to retire. But the delay in naming Poling's replacement may signal some dissension within the Ford family and others on the automaker's board. The transition at Ford poses a striking contrast with the recent events at General Motors Corp., where Chairman Robert C. Stempel was forced out late last month. "The baton of leadership is passing smoothly, as planned," said Ford Chairman Poling dur- ing a brief meeting with reporters yesterday afternoon. "The com- pany will continue to move forward with vigor, along the path our strategists have laid out for us." It has been expected that the 63-year-old Benton would retire early next year. He has been ill and underwent open heart surgery earlier this year. When Benton steps down on Jan. 1, Ford will elevate Alexander Trottman to the post of president and chief operating officer of the Ford Automo- tive Group, which oversees the automaker's vast, worldwide car- making operations. Trottman, 59, had been serving as executive vice president of Ford's North American operations. He will also be given a seat on the board. He will join Allan D. Gilmour, 58, who already has a seat. In his latest promotion, Gilmour was named vice chairman of both corporate staffs and the profitable Ford Financial Services Group. He previously had been running gilmour the Ford Automotive Group. In an unusual step, the board also named a second vice chairman, Louis R. Ross. Ross, 63, will be in charge of worldwide technical development programs. Ross also is a board member. Together, the three will serve directly under Poling as part of the reinvigorated Office of the Chairman. It is a strategy the carmaker has used before Ford Names Management Team For Future as a transitional bridge. Some observers were struck that no one was named to directly succeed Benton as Ford's president. Despite Poling's protestations, "it may signal that the board is not yet ready to decide who's going to run the company," said one well- informed source. The question of succession appears to remain a two-man race between Trottman and Gilmour, and the final choice may hinge as much on emotional as substantive issues. Former RAF Navigator The Scottish-born Trottman has by far the more extensive resume in terms of automotive operating experience. A former Royal Air Force navigator, he has been with Ford for 37 years. Trottman has served in the U.S., Europe and Asia, and was running Ford's then-profitable European operations when ross summoned to the U.S. in February 1989. Since arriving in the U.S., Trottman has won high marks for his ability to shave costs and increase market share. Gilmour has spent most of his career in Ford's finance and financial services operations, though he was most recently responsible for the worldwide automotive group. He is considered one of the brightest men in the domestic auto industry, with a rapier-sharp, often self-deprecating wit. When asked if Ford would go back to the equities market soon, Gilmour deferred to one of his subordinates. "I've only been involved in this area since noon," he said. Until recently, it appeared that Gilmour was being groomed for the top spot, while Trottman was favored to replace Benton as president. But in the past few months, that has been questioned. There have been several pub- lished reports that Trottman had suddenly become the favorite of the board, especially the Ford family. That reflects an ongoing debate, not limited to Ford, over who is best qualified to run a car company. During the past few de- cades, the top jobs at the Big Three usually went to the "bean counters." A rare exception occurred in 1990, when Stempel became chairman of GM. But his recent forced departure raises questions about the value of placing a "car guy" in the top spot, analysts say. Trottman's new position will provide a clear test of his value. Ford lost $159 million during the third quarter and is likely to post another deficit in the final months of the year. The deficit belongs exclusively to the company's automotive sec- tor. For his part, Trottman gave a mixed forecast for 1993. "I believe things will be better in the United States market than they have this year," he said. "In the European market, we're still very disturbed by the weakness of the major economies. And frankly, that doesn't look particularly good in the short-term." There are other, less tangible issues that could come into play when Poling retires. There are some board members reportedly bothered by the idea of promoting a foreigner to the helm of America's second-largest car company. Another issue that plays into the decision is the long-term role that may be played by several Ford family members, including Edsel Ford II, and William Clay Ford Jr. The two may some day seek key management roles, ob- servers believe. Rivalry Downplayed Both Gilmour and Trottman have taken pains to try to downplay any possible rivalry. Earlier this month, in a joint interview in the Chicago Tribune, Gilmour said "I suspect we'll both be deeply involved in the next generation of management together." Added Trottman, "There's no one person on a white horse here." Of the two, whom does Poling favor? Forget about getting an answer, he says. While he says he wants to discourage the guessing game, Poling doesn't make it any easier by saying only that he'll re- tire "late next year." This article is copyright 1992 Investors Business Daily. Redis- tribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM