Automotive Purchasing News Review 5 May 2014 - page 1

automotivepurchasing.com
News Review
5 May 2014
FordnamesFieldsas incomingCEO
May 1, 2014
Ford Motor Company has today
(May 1) officially announced Mark
Fields is its new chief executive.
The current incumbent, Alan
Mulally, will retire from the
automaker as of July 1, 2014.
53-year-old Fields, who also
gets elected as a member of the
company’s board of directors, was
made Ford’s chief operating officer
in December 2012. He has been
leading all of Ford’s global business
operations and most skill teams,
including product development,
manufacturing, purchasing, and
marketing, sales and service.
Business Plan Review
Fields’ role as COO has included
leading the company’s weekly
Business Plan Review meeting,
which Mulally established to track
the progress of the so-called One
Ford plan, and to monitor the
global business and competitive
environment.
The
Thursday
meetings are credited with
driving a reliable and transparent
process for running Ford’s global
operations and enabling Ford’s
senior leadership to work closely
together and act decisively on its
plan.
Mulally, 68, is retiring after
nearly eight years leading Ford
and capping a remarkable 45-
year career. Mulally has led Ford’s
transformation and strengthened
its position as one of the world’s
leading global automakers. Under
Mulally and the company’s One
Ford plan for profitable growth,
Ford has achieved 19 consecutive
quarters of profitability, developed
the strongest product line-up in
Ford’s history and embarked upon
the company’s most ambitious
global expansion in the past half
century.
Compelling vision
“Alan deservedly will be long
remembered for engineering one
of the most successful business
turnarounds in history,” Bill Ford
(who recruited Mulally from Boeing
in 2006) said. “Under Alan’s
leadership, Ford not only survived
the global economic crisis, it
emerged as one of the world’s
strongest auto companies. We
always will be grateful to Alan for
his leadership, compelling vision
and for fostering a culture of
working together that will serve our
company for decades to come.”
Transition
The transition in July is
approximately
six
months
earlier
than
previously
anticipated, following Mulally’s
recommendation to accelerate the
timetable based on the readiness of
Ford’s leadership team. As Bill Ford
explained: “Alan and I feel strongly
that Mark and the entire leadership
team are absolutely ready to lead
Ford forward, and now is the time
to begin the transition.”
Mulally thanked the Ford team
for their many contributions and
accomplishments, saying: “It has
been an honour to serve and
contribute to creating a viable,
profitably growing company for
the good of everyone associated
with the Ford Motor Company. By
working together with all of our
stakeholders around the world,
we now are accelerating Henry
Ford’s original vision to open the
highways to all mankind.
Bright future
Mulally added that Ford’s
future is so bright, “...and Mark
– supported by an experienced
and dedicated senior leadership
team – is absolutely the right
leader to continue to deliver on our
compelling vision.”
Fields
underscored
his
commitment to the One Ford
plan, including building on the
company’s unprecedented global
introduction of new products,
innovations and excellence.
Commitment
“It is a true honour to lead this
great company and this talented
team into the future,” Fields said.
“Under Alan’s leadership, we
have seen the power of One Ford
and what a culture of positive
leadership and working together
can accomplish.
“My commitment is to build on that
success by accelerating our pace of
progress," continued Fields, adding:
"All of us at Ford are committed to
delivering even more of the great
products and innovations that
will deliver growth and define our
company going forward.”
Daimler net profit nearlydoubles
Apr 30, 2014
Daimler AG says it started 2014
withsignificant growth inunit sales,
revenue and earnings. Worldwide,
the Group sold 565,800 cars and
commercial vehicles in the first
quarter - more than ever before -
and thus increased its unit sales
by 13 percent compared with the
prior-year period. As Automotive
Purchasing editor Drew Hillier
reports, the German car and truck
maker cited its recent roll-out
of new models, including a new
luxury sedan, helped buoy sales
in China and other markets and
boost profitability.
Despite unfavourable exchange
rate
developments,
revenue
increased by 13 percent to EUR29.5
billion. Group EBIT rose to EUR1,787
million (Q1 2013: EUR917 million).
Net profit reached EUR1,086 million
(Q1 2013: EUR564 million), and thus
nearly doubled compared with the
prior-year period.
Profitable growth path
"Our strategy is paying off;
our investments are bearing
fruit," stated Dr. Dieter Zetsche
(pictured), Chairman of the Board
of Management of Daimler AG and
Head of Mercedes-Benz Cars. "We
made a good start to this year, as
expected. As theyear progresses,we
will continue working systematically
on our profitable growth path.”
Nonetheless, Daimler warned
than demand for new cars in
emerging markets with the
exception of China won't be
immune from slowing economic
growth while an increase in value-
added tax in Japan will put a brake
on growth in that market. And as
Bodo Uebber, Member of the Board
of Management of Daimler AG
responsibleforFinance&Controlling
and Financial Services, stated: "The
growth offensives and efficiency
programs are taking effect and will
be systematically continued. Due to
the currently volatile environment,
we are monitoring the sales and
finance markets very carefully. With
our liquid resources, we are well
prepared for fluctuations."
Hedging investments
The significant increase in
earnings at the beginning of the
year was influenced by the very
positive development of unit sales
and revenue, a better model mix
and further efficiency gains at all
divisions. Foreign exchange rates
had a negative impact on EBIT in
the first quarter. The hedging of the
investment in Tesla and the disposal
of the shares in Rolls-Royce Power
Systems Holding GmbH resulted
in expenses of EUR161 million and
EUR118 million respectively. Without
those two special items, operating
profit would have more than
doubled compared with the prior-
year period. EBIT from the ongoing
business increased to EUR2,072
million (Q1 2013: EUR949 million).
The sale of the shares in Rolls-
Royce Power Systems Holding
and the changeover from the
equity-method measurement of
the shares in Tesla to first-time
fair-value measurement at the
reference date March 31, 2014, will
lead to a significant contribution to
earnings of approximately EUR1.7
billion.
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