Ford chief executive Bill Ford on Wednesday sent an email to employees reiterating management’s priorities and saying he is examining all possible options in the effort to fix the company’s ailing operations, according to Dow Jones Newswires.
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“As you know, our response to the challenges to our business is the subject of ongoing speculation in the news media, on Wall Street, and in our own hallways and lunchrooms,” Bill Ford reportedly said in the introduction of the email, which was provided to the news agency “by a person at the company”. Speculation “is to be expected at a time of great change in our industry and renewed urgency among all of us,” he said.
Sources close to the situation told the news agency said the hiring of [Goldman Sachs merger and acquisition specialist] Kenneth Leet is a critical part of the company’s move to launch a strategic review of ailing operations such as the Jaguar brand that could lead to the sale of assets or broader alliances with other companies.
“Contrary to speculation, nothing has been decided and we will not rush to judgments,” Bill Ford reportedly said in relation to Leet’s new role “in evaluating our business and exploring strategic options.”
According to Dow Jones, the automaker’s presidernt and CEO did not mention anything in relation to the company’s brands in his letter to employees, but made a point of referring to the company’s profitable lending arm. “As we’ve said before, Ford Motor Credit Company is a strategic asset to Ford that generates solid profits and dividends. The automotive financing unit continues to have strong business fundamentals and provides key support for Ford vehicle sales worldwide.”
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By GlobalDataThe report added that Bill Ford followed the Ford Credit passage with the assurance that “it is prudent in a time of rapid change in our industry for us to carefully examine all of our options.”
Dow Jones noted that Ford executives have been repeatedly questioned by media in recent months concerning whether it will eventually be forced to sell at least a stake in Ford Credit following a move by General Motors to sell a controlling stake in its lending arm.
In addition to providing $US14bn cash needed to fund GM’s restructuring operations, the sale – to an investor consortium led by Cerberus Capital Management – is designed to lift GMAC’s credit ratings from junk status, the news agency said. Ford Credit, like GM, is tagged with non-investment grade debt ratings and its performance has suffered due to higher borrowing costs, it noted.
Bill Ford reportedly didn’t give specifics on what changes might be coming, but assured employees that “the company’s top priority remains the turnaround of our North American operations” and reiterated the automaker’s plan to announce accelerated turnaround efforts within “the next couple [of] months” adding that “these measures may be difficult, but are necessary.”
