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JULY 12, 2010 • 11 AUTOMOTIVE NEWS ALL-STARS Ford CEO Alan Mulally: Industry /BLOOMBERG leader of the year DAVE MARTIN CEO-ASIAN Jamie LaReau 2009, forgoing government cash was [email protected] a more difficult decision for Mulally Chung Mong-koo all him the comeback kid. than it seems today. Chairman, Hyundai Motor Co. Ford Motor Co. CEO Alan Now the new Ford Fiesta is ex- Mulally, 64, has steered the pected to lift third-quarter sales as Into the top ranks Conce-struggling automaker Ford launches the compact car this into profitable seas this year. Per- summer. And early next year the re- Chung, 72, turned the Hyundai haps more valuable for the long designed Ford Focus sedan and brand into a superpower, boosting term, Ford has become a consumer hatchback arrive on Ford’s new global sales and share in defiance favorite, and its vehicles have global small-car platform. of a torturous world economy that climbed steadily in product quality “The most important thing Ford had rivals floundering. The Korean rankings. has done is invest heavily in new boss pushed his company into In a tumultuous year, those ac- product during this down cycle,” new segments, built on steady complishments have made him Erich Merkle, president of the con- and dramatic improvements in Automotive News’ Industry Leader sulting firm Autoconomy in Grand quality and handed U.S. of the Year for 2010. Rapids, Mich., told executives more autonomy. First, there’s the auto- Bloomberg this spring. maker’s bottom line. “As we’re coming out [of In the first quarter of the recession], they’ve this year, Ford reported got all this new product a net profit of $2.1 billion, com- coming out in just about every cate- pared with a loss of $1.4 billion a gory.” /BLOOMBERG year earlier. Ford said it “expects to A daring move by Mulally made deliver solid profits this year, with that product offensive possible. In positive automotive operating-re- late 2006, Ford borrowed $23 bil- lated cash flow.” lion, hocking everything, including
Products produced those profits. the company’s Blue Oval logo. That SUSANA GONZALEZ Mulally remains disciplined in cut- gave Ford the cash cushion it need- MARKETINGN ting costs and reinvesting in product ed to withstand losses and develop development. Redesigned models new models such as the Fiesta. Jim Farley such as the Ford Taurus sedan The trade-off was a debt load that Group vice president, global helped boost Ford Motor’s U.S. mar- Mulally has said puts Ford at a com- marketing and Canada, Mexico ket share through June to 17.5 per- petitive disadvantage with rivals and South America operations, cent from 16.1 percent a year earlier. GM and Chrysler, which slashed Ford Motor Co. And in June the Ford brand their debt in bankruptcy. jumped from eighth to fifth place in Ford ended the first quarter with QILAI SHEN/BLOOMBERG Creating buzz the Initial Quality Study by J.D. $34.3 billion in debt. It trimmed CEO — NORTH AMERICAN Farley’s Fiesta Movement Power and Associates. that to $27 billion by making pay- connected with young customers. Of course, Ford has benefited from ments totaling more than $7 billion One hundred Fiesta drivers the troubles of its rivals. Dealers re- in the second quarter. Alan Mulally posted their impressions on CEO, Ford Motor Co. port that domestic-make shoppers Mulally’s discipline showed in YouTube and elsewhere on the turned increasingly to Ford after June when he made the historic de- Internet. Meanwhile, Farley General Motors and Chrysler went cision to terminate the 71-year-old Ford revs up profits and products pushed an ad co-op program with through bankruptcy and accepted Mercury brand by year end. His log- Alan Mulally has profits and products in high gear. In the first quarter, Ford dealers that pitched Ford as the government funds to survive. Ford ic: Mercury’s market share was less posted $2.1 billion in net profits. The Ford Fiesta subcompact is in no-bankruptcy automaker. drew import intenders in the wake than 1 percent, and Ford could bet- showrooms, the redesigned Explorer is due this year, and the redesigned Purchase consideration for many of Toyota Motor Corp.’s recalls. ter spend limited product develop- Focus is coming in early 2011. Mulally continues to refine his vision by Ford vehicles is up, and U.S. Eschewing a government bailout ment dollars on the Lincoln brand. dropping Mercury at year end to concentrate on the Ford and Lincoln market share for Ford Motor has served Ford well. But in the For Mulally, it’s all about spending lineups. His steadfast plan to turn Ford around is bearing fruit in reached 17.5 percent through bleak days of late 2008 and early on product — wisely. c impressive fashion. June, up from 16.1 percent for the same period of 2009. CEO — EUROPEN Martin Winterkorn SALESN Chairman, Volkswagen AG Dave Zuchowski Vice president Striving to be of national the biggest sales, Hyundai Motor America /BLOOMBERG Winterkorn’s “Strategy /BLOOMBERG 2018” plan aims to Cashing
make Volkswagen the JIN LEE world’s largest in on U.S. EXECUTIVE — ASIAN AUTOMAKERN U.S. EXECUTIVE — EUROPEAN AUTOMAKERN automaker, selling clunkers over 10 million vehicles in 2018. He
MICHELE TANTUSSI “Dave can sell ice to the Eskimos” John Krafcik Ernst Lieb wants to build the bulk of those vehicles is how one dealer describes the on just three flexible architectures and Hyundai sales chief. Zuchowski, CEO, Mercedes-Benz USA CEO, Hyundai Motor America spread sales across brands ranging 52, kept sales rising when industry from exotic Bugatti, Bentley and volume crashed in 2009. Hyundai Climbing through the rubble Leading in luxury Lamborghini to Audi, VW, Porsche, Seat was one of just three brands to The industry stumbled, but you wouldn’t know Under Lieb’s leadership, Mercedes-Benz has clawed and Skoda. The total won’t include achieve an increase. To do it, it by looking at Hyundai Motor America. its way back up the quality surveys and sales charts. Suzuki’s sales, despite VW’s 20 percent Zuchowski got the jump on the Krafcik, 48, had the right mix of humility, It is No. 3 in this year’s J.D. Power and Associates stake in the Japanese automaker. The cash-for-clunkers program last chutzpah and hustle to steer the company Initial Quality Study. Sales were up 26 percent troubles of Toyota and General Motors summer, offering to front the through the crash of 2009, closing the horrible through June, outpacing the industry. During the could allow Winterkorn, 63, to reach his program’s incentive payments to year up 8 percent in sales and with more than industry’s deep slump, Lieb, 55, persuaded dealers ambitious target even sooner than he get dealers selling under the pitch a point of added market share. Sales are still to invest $1.4 billion in upgrading their stores to the had planned. On the other hand, some a month early. Dealers reimbursed rising this year as Krafcik prepares to take the new Autohaus look. It’s part of Lieb’s push to instill say Toyota’s woes arose from a push to Hyundai after receiving their brand into the U.S. luxury market. a customer-oriented culture at Mercedes-Benz. replace GM as No. 1. government payments. 20100712-News--0012,0013-NAT-CCI-AN_-- 7/8/2010 9:39 AM Page 1
12 • JULY 12, 2010 AUTOMOTIVE NEWS ALL-STARS
DESIGNN Freeman Thomas Design director, Strategic Concepts Group, Ford Motor Co. Adding sizzle to the steak From behind the scenes, Thomas, 52, is fanning Ford’s rebound with stylish lines and muscular curves. He is the pen behind the Audi TT and A4, Chrysler 300 and Dodge Charger, and his influence has begun emerging at auto shows in the eco-friendly Start concept, the current Taurus sedan and the racy, next-generation Ford Focus and Explorer crossover.
ENGINEERINGN SUPPLIERN Barb Samardzich Rodney O’Neal Vice president of powertrain engineering, Ford Motor Co. CEO, Delphi Automotive Powertrain queen Out of bankruptcy, into the fray Samardzich, 51, continues on a winning streak, with her second straight It’s out, profitable and on the prowl. Companies that spend All-Star award. This year she is guiding key launches of powertrain products years in Chapter 11 are tempted to eat the seed corn to keep going. Delphi shed that will boost fuel economy and cut emissions. These include 10 new or unprofitable divisions, refocused — and developed innovative technologies that re-engineered engines and six new transmissions. Among the new engines: the led to five PACE Award finalists or winners. O’Neal, 56, led Delphi out of F-150 pickup’s EcoBoost 3.5-liter V-6, the Mustang’s 3.7-liter V-6 and 5.0-liter bankruptcy as a smaller but competitive player, not a candidate for Chapter 22. V-8 and, for the Super Duty pickup, a 6.2-liter V-8 and a 6.7-liter diesel V-8.
MINORITY BUSINESSN ADVERTISINGN Michael Sprague Burt Jordan Executive director of global vehicle and powertrain Vice president of marketing, Kia Motors America purchasing, Ford Motor Co. /BLOOMBERG NEWS Sock monkey’s big game Buying builds diversity With the Kia brand capturing a bigger share of the U.S. JIN LEE Jordan, 43, heads Ford’s global powertrain market, it was time for Kia Motors America’s first Super Bowl spot. That’s a big purchasing, supplier risk management and supplier diversity. In a brutal year, he chunk of change. But Sprague, 45, and ad agency David & Goliath spun a saw to it that 10 percent of Ford’s purchases came from minority suppliers. That good-hearted tale of the secret life of a sock monkey and his posse of children’s made Ford the industry leader as a minority-enterprise customer for the third toys. For the big game telecast in February, the toys’ bowling, snow-frolicking, straight year. Ford also added four minority- or women-owned suppliers to its Vegas-crawling lifestyle was an ideal showcase for the new 2011 Kia Sorento Aligned Business Framework program for preferred suppliers. SUV. By spring, the New York auto show named Kia best auto advertiser.
DEALER, PRIVATELY HELDN Tammy Darvish Co-leader of the Committee MANUFACTURINGN to Restore Dealer Rights and vice president of Darcars Jim Tetreault REMARKETINGN Automotive Group in Silver Vice president, North America Spring, Md. PURCHASINGN manufacturing, Ford Motor Co. Eric Johnston Vice president of sales, service and Rejected? She Tony Brown Going global parts, Mazda North American had not yet Operations begun to fight Group vice president of global on the line purchasing, Ford Motor Co. As Ford moves closer to CEO Alan After getting her franchise Mulally’s goal of producing global Residual-value king DEALER, PUBLICLY HELDN termination letters, Darvish, Turning suppliers vehicles in multiple regions, Johnston, 43, has stuck to a 46, gave rejected General Tetreault, 54, has been on the front disciplined sales approach: staying Mike Jackson Motors and Chrysler dealers into allies lines — manufacturing lines — away from massive cash incentives, a face, a voice and a fighting When parts suppliers were asked making it happen. He’s gearing up keeping inventory tight and selling CEO, AutoNation Inc. presence on Capitol Hill. in 2007 whom they liked to work Ford’s Louisville, Ky., plant, which only 6 percent of volume to rental Along with committee with, Ford ranked dead last. By will be one of the most flexible in the fleets. His tactics have hoisted No more push co-leaders Jack Fitzgerald steadfastly pursuing a policy of automaker’s global network. Mazda’s residual values to the top of Jackson, 61, used his position as and Alan Spitzer, she lobbied choosing selected suppliers and Louisville will make the C-segment the industry, passing Subaru and head of the largest auto retailing for a law mandating working closely with them, Brown, cars that are the high-volume Honda as the No. 1 brand for chain in the United States to push arbitration for terminated 54, has pulled Ford up in the centerpiece of the One Ford strategy. retained value. The Mazda3 publicly for inventory control at the dealers. She spent rankings to No. 3, behind And Tetreault has spent this year compact, the brand’s volume leader, Detroit 3 — and it’s happening: $100,000 of her own money traditional leaders Honda and ensuring a smooth launch of the Ford holds a hefty 59 percent of its value Domestic automakers’ vehicle on the rejected-dealer cause. Toyota. Brown’s clear direction to Fiesta at a recently reopened after 36 months, while the mid-sized stocks have stayed below a 70-day She worked the phones a strong purchasing team has assembly plant in Cuautitlan, Mazda6 retains 55 percent, supply since March 1, according to 24/7 to funnel information been to build trust rather than Mexico. The Fiesta is the first global according to Automotive Lease the Automotive News Data Center. and support to hundreds of just beat up suppliers over price. car under One Ford. Never mind that Guide’s midyear calculations. On And Jackson has been taking care dealers struggling for their Selling more vehicles and it’s arriving much later in the United July 1, Johnston was named vice of business at home, too: livelihoods. And she won. boosting suppliers’ sales States than elsewhere. One Ford is president of strategic planning and AutoNation’s profits have returned Never has a female dealer volumes help, too. happening, one factory at a time. market integration. to levels of early 2008. exercised such influence. 20100712-News--0012,0013-NAT-CCI-AN_-- 7/8/2010 9:39 AM Page 2
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LABOR RELATIONSN
/REUTERS Ron Gettelfinger President (retired), UAW /BLOOMBERG Seeing automakers through bankruptcy
and beyond JEFF KOWALSKY BRENDAN MCDERMID When General Motors Co. emerged from bankruptcy a year ago, Gettelfinger had helped save the domestic auto industry, new UAW President Bob King said last month. Gettelfinger had worked behind the scenes in Washington to persuade President Barack Obama’s auto task force to support a bailout. And the concessionary contracts Gettelfinger shepherded through an increasingly resistant membership beginning in 2007 have allowed the Detroit 3 to be profitable on a lowly 11.5 million-unit U.S. sales rate. This is third straight all-star designation for Gettelfinger, who retired last month at 65.
FINANCEN Lewis Booth CFO, Ford Motor Co. /BLOOMBERG No Chapter 11 — but lots of debt DANIEL ACKER Unlike its crosstown rivals, Ford avoided a trip to U.S. Bankruptcy Court in 2009. The company did so by pre-emptively borrowing $23 billion against its assets. Ford didn’t expect to make a profit until 2011 but beat that target when it earned $2.1 billion in the first quarter of 2010. “It would be unwise to think of $2 billion as a running rate,” Booth cautioned in late April, citing the cost of launching new products. Beyond the product offensive, Booth, 61, knows the company faces another challenge: whittling down debt that totals $27 billion even after Ford trimmed that by more than $7 billion in the second quarter. Ford’s competitors, which shed debt while in Chapter 11, don’t carry that burden. ENVIRONMENTALN Elon Musk CEO, Tesla Motors A high-voltage car guy His fledgling Tesla Motors has sold barely 1,000 expensive electric sports cars, total. But Musk, a 39- year-old dot-com star, has galvanized the public’s consciousness for electric cars by orchestrating a hot INFORMATION TECHNOLOGYN stock offering, lining up a partnership with Toyota to follow existing ties Mark O’Neil with Daimler, snaring a $465 million federal loan to expand and snatching PRODUCT DEVELOPMENTN CEO, DealerTrack Holdings Inc. the big, empty NUMMI factory in California for a song. Derrick Kuzak Giant killer? Group vice president of product O’Neil, 51, challenged development, Ford Motor Co. PUBLIC RELATIONSN dealership management systems giants ADP Dealer SERVICE AND PARTSN Soft-spoken Ray Day Services and Reynolds and Reynolds Co. — which product guru Vice president of communications, together hold 80 percent of Chuck Kendig Kuzak was ideally situated to lead a Ford Motor Co. the market — with an Senior manager of national product revolution. Having spent irreverent marketing campaign several years heading product Product is news parts and service, Acura that poked fun at their fees. GOVERNMENT RELATIONSN development at Ford of Europe, Kuzak, As key rival Toyota Motor Corp. DealerTrack guaranteed that 1-hour service is 58, was intimately familiar with the battled bad news this year, Ford’s the company could cut a more than a slogan company’s portfolio there. When public image kept improving. That’s dealer’s monthly software bill Rep. Betty Sutton gasoline prices soared two years ago partly because of Day’s subtle and by at least half or DealerTrack U.S. congresswoman, D-Ohio Every automaker and dealer and his boss, Alan Mulally, committed savvy approach to public relations. would pay for a month’s wants quick turnarounds on Ford to becoming a fuel economy His strategy is simple: Keep the service. Thanks in part to The woman vehicle service, but a national leader, Kuzak knew he needed to look media focused on product O’Neil’s campaign, who brought you accelerated-service program no further than Ford’s European lineup innovation. With Ford introducing new DealerTrack expects to that Kendig, 46, instituted at to reinvent the North American technology regularly, Day, 43, has capture at least 10 percent of cash for clunkers Acura has made that a reality. portfolio. The European-designed plenty of opportunities to all U.S. dealerships by the end Rep. Sutton, 46, was the key The program aims to have work Fiesta subcompact is on its way to consistently tout new features and of this year. The gain comes sponsor of the cash-for-clunkers on every car in the service drive dealerships, and the next-generation keep the news positive. And when despite a major blow last legislation. Clunkers was the — excluding major repairs or Focus comes next year. Added to the the bad news that Ford will kill its month: Asbury Automotive overwhelming sales event of the past body work — completed within widely praised Fusion and Taurus, the Mercury brand by year end was Group — the sixth-largest U.S. 12 months. Sutton’s program pulled one hour, thanks to a pit-crew- smaller cars will complete the leaked in June, Day nimbly shifted to dealership group, based on consumers out of their bunkers and type division of labor. The result transformation of Ford’s lineup from a damage control. He made senior sales of new retail units, and made it acceptable again to buy a car has been massive savings on hodgepodge of forgettable vehicles into executives immediately accessible to DealerTrack’s largest single or truck, thus moving many dealers loaner cars, increased dealer one of the industry’s most fuel- the media and regained control of customer — is moving its — both rejected and continuing — profits and higher customer efficient, and visually coherent, fleets. the message. DMS business to ADP. into the category of survivors. satisfaction and retention. Next challenge: a revolution at Lincoln.