QUOTE OF THE DAY “It appears we are in a more stable environment, and the sun is shining.We are now finally not stuck in first gear anymore.” Jesse Toprak, chief analyst for Cars.com, about April’s U.S. sales report for auto manufacturers.
Article, 1D
Ford CEO to retire, replacement named
DEARBORN, Mich. - Ford Motor Co. said Thursday that its chief executive, Alan Mulally, will retire July 1 and be succeeded by Mark Fields, a veteran executive who has played a crucial role in the company’s turnaround.
Mulally had been expected to retire this year; he joined Ford as chief executive when it was struggling for survival in 2006.
The transition to Fields, a 25-year veteran of the company, as leader of the nation’s second-largest automaker has also been widely expected since he was elevated to chief operating officer two years ago.
Still, Mulally’s departure will end an era at Ford, in which the company borrowed billions of dollars to pay for a deep restructuring that allowed the company to avoid the bankruptcies and bailouts that overcame its chief U.S. rivals, General Motors and Chrysler.
“Alan deservedly will be long remembered for engineering one of the most successful business turnarounds in history,” said William Clay Ford Jr., the company’s executive chairman.
“Under Alan’s leadership, Ford not only survived the global economic crisis, it emerged as one of the world’s strongest auto companies.”
Mulally, 68, joined Ford from Boeing and immediately began streamlining the company by trimming vehicle programs and realigning its vast bureaucracy and regional divisions under a turnaround plan known as One Ford.
Fields played a big part in the comeback as the head of the automaker’s Americas division, which cut thousands of jobs and closed factories to better align Ford’s production with its U.S. market share. Since becoming chief operating officer in December 2012, he has become increasingly visible in the company, running the weekly strategy meetings and overseeing Ford’s global auto operations.
Duke investors seek spill investigation
CHARLOTTE, N.C. - Some Duke Energy investors plan to push the utility’s board of directors to investigate issues surrounding a major coal ash spill that dumped toxic sludge into a 70-mile stretch of a North Carolina river.
About 200 protesters gathered in front of the Duke Energy headquarters Thursday as the company held its annual shareholders meeting.
Bill Dempsey, senior vice president of finance at the Nathan Cummings Foundation, said Duke has the chance “to do the right thing for their investors.” His foundation is among a coalition of 20 large institutional investors in the Charlotte-based company.
“They can have an independent investigation and put to rest many of the questions that are raised. The current strategy lends itself to even more questions being raised,” Dempsey said.
The coalition wrote to Duke’s board in March, saying its confidence has been shaken by the Feb. 2 spill into the Dan River. Two weeks ago, coalition members received a letter saying Duke’s board would not launch an investigation.
The company’s letter, signed by Philip Sharp, a board member and chairman of the company’s regulatory policy and operations committee, said Duke had already taken multiple steps, including a “comprehensive engineering review of every Duke Energy ash basin.”
Dempsey said the coalition will still bring the coal ash issue before the board.
The group is comprised of directors of big investment funds and pension plans that hold Duke stock, including state treasurers in Connecticut, Oregon and Pennsylvania, as well as the Illinois State Board of Investment and California State Teachers’ Retirement System.
Taco Bell chief to step up to Yum CEO
The man who brought Dorito-shelled tacos to America is rising to the top job at Yum Brands Inc.
Greg Creed, who has led the Taco Bell chain since early 2011, will replace David Novak as Yum’s chief executive officer Jan. 1, 2015, the company said Thursday in a statement. Creed, 56, also will join the board, and Novak, 61, will become executive chairman.
The move will give Yum, which also owns the KFC and Pizza Hut chains, a leader known for clever marketing and innovative new items at a time when fast-food chains are battling over Americans’ dining dollars. Creed oversaw the introduction of the Doritos Locos tacos, the premium-priced Cantina Bell menu and most recently a variety of breakfast fare that includes waffle tacos. Under his leadership, the Mexican-food chain went from a laggard into Yum’s fastest-growing U.S. brand.
“While it can never be good news that a CEO like Mr. Novak is stepping away from managing the day-to-day business, we feel confident that he leaves the company in good hands,” David Palmer, an analyst at RBC Capital Markets in New York, wrote in a note. “We expect Taco Bell’s upcoming year to be one that reinforces Greg Creed’s track record as a leader with a proven ability to deliver results.”
Creed will take over at a pivotal time for Yum’s operations in China, where it gets about half of its revenue. The company has been trying to rebuild trust with customers there after one of its suppliers was investigated for selling food with too much antibiotics. The company said last month that first-quarter sales at restaurants open at least 12 months jumped 9 percent, the first gain after five straight quarterly drops.
Taco Bell’s same-store sales fell 1 percent in the most recent quarter, which ended before the nationwide introduction of the new breakfast menu, which also features egg burritos and the bacon A.M. Crunchwrap. For all of last year, the chain’s U.S. same-store sales rose 3 percent, compared with declines at KFC and Pizza Hut.
Business, Pages 32 on 05/02/2014