Executive Exodus

Recent changes in Ford Motor Co.'s executive leadership represent an opportunity for enrichment, rather than a disruption in the chain of command, says Center for Automotive Research Chair-man David Cole.

His remarks follow in the wake of Martin Leach's abrupt resignation in August from his post as Ford of Europe president and chief operating officer.

Lewis Booth, 54, succeeds Leach. Booth had been Mazda Motor Corp. president and CEO.

Reports suggest Leach will wind up at troubled Fiat Auto SpA, which is searching for a successor to CEO Giancarlo Boschetti.

While Ford of Europe's tumultuous turnaround plan suffered a setback last quarter with a pre-tax loss of $525 million — nearly 30 times greater than the shortfall recorded in second-quarter 2002 — Fiat's woes are so severe, it plans to close 11 plants and eliminate more than 29,000 jobs by 2006.

“My guess is that he's got something lined up,” a Ford of Europe spokesman says of Leach.

The COO position was created for Leach, and the Ford spokesman expects no change in corporate structure with the arrival of his unnamed successor.

Leach's departure comes on the heels of Kathleen Ligocki's resignation as Ford vice president-customer service division to become president and CEO of Tower Automotive Inc.

Ligocki and Leach, both 46, had been marked by Ford Chairman and CEO Bill Ford Jr. as members of Ford's “next generation of management” and Bill Ford recently said they were being primed “for even bigger jobs.”

Francisco Cordina replaced Ligocki in customer service and Hisakazu Imaki replaces Booth at Mazda.

Of Leach's legacy, the spokesman notes he is considered the “father of the 45 in 5” — referring to Ford of Europe's plan to launch 45 new or significantly redesigned vehicles in five years. That time window closes next year. Says Ford: “We're still on track for the 45.”