In response to speculation last week that he could step down by the end of next year, Ford Motor Company CEO Alan Mulally has officially stated he doesn’t plan to retire, at least for the foreseeable future. During a press conference in New York yesterday, Mulally said “my plan is to continue to serve as the CEO of Ford, I’m really clarifying that now. If I had plans to do anything differently I’d share it with everbody.”
Ford posted earnings of $4.14 billion U.S. in North America during the first half of this year, yielding an operating profit margin of 10. 8 per cent (five per cent is considered respectable by auto industry standards). Nevertheless, the company continues to struggle in Europe and is projecting a loss of more than $1 billion U.S. for its operations in the region by the end of this year. In Asia, Ford is also losing money as it plays catch up to rivals who have significantly expanded their presence in Far Eastern markets, particularly China (Ford’s penetration in China is currently around 3 per cent).
Given the company’s strong performance in North America, industry insiders have tipped Ford vice president and president of the Americas, Mark Fields as a potential successor to Mulally, though in response to the rumors, the Ford CEO shifted the focus to what he sees as a roster of talent among the company’s executive ranks. “All of our leaders are growing, they’re developing,” Mulally said. “I think Ford has probably the strongest, many people believe it has the strongest bench ever.”
