Since Ford Motor Co. Chairman and Chief Executive William Clay "Bill" Ford Jr. assumed his post nearly five years ago, the company has racked up $9 billion in losses and restructuring charges, cut 73,000 American jobs, and lost $18 billion in stock market value. Nothing short of the company's independence is at stake these days. It's no wonder that questions about his future role at the company—and even his family's—have grown more persistent.
This year alone, Ford Motor (F) lost $1.4 billion in the first half, with deeper losses coming after the company cut its fourth-quarter production by 21%—the deepest cut in 25 years—because of falling demand for its profitable pickups and SUVs. The CEO is likely in a few weeks to announce a faster schedule of cutting assembly plants and widening a buyout offer to hourly and salaried employees to reduce headcount faster. Debt-rating agencies have punished Ford's and Ford Motor Credit's credit ratings, increasing its cost of borrowing when it can least afford it, and they're poised to send Ford debt deeper into "junk" status.
The CEO recently hired investment banker and mergers-and-acquisitions specialist Kenneth Leet to advise the board of directors on major strategy shifts, including alliances with other auto makers and perhaps sales of assets, which include brands such as Jaguar and Land Rover and the Ford Motor Credit and parts businesses.
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