Ford Motor Co. Names New Vice Chairman, Boosts Speculation of Spinoff

Ford Motor Co. has announced significant management changes as it prepares to take control of the No. 2 automaker at the start of next year. Peter Pestillo has been named vice chairman, and Jacques Nasser, head of auto operations, is set to become the next CEO. The company has also unexpectedly replaced the president of its Visteon auto-parts business, fueling speculation about a possible spinoff. Ford shares rose 7.6% to $44.25 as the company seeks to cut costs and boost profits on cars in North America, Europe, and Latin America.

Key Takeaways:

• Peter Pestillo has been named vice chairman of Ford Motor Co., effective Jan. 1, 2023.
• Jacques Nasser will become the next CEO of Ford Motor Co. in January 2023.
• The company has replaced the president of its Visteon auto-parts business, Charles Szuluk, with Craig Muhlhauser.
• John Devine, chief financial officer, will oversee Visteon and other units, including Hertz rental car and Ford Land.
• Ford shares rose 7.6% to $44.25, indicating investor confidence in the company's management changes.
• Visteon is the world's No. 2 auto-parts maker after GM's Delphi Automotive Systems, with annual sales of $17 billion.
• Henry Wallace has been named group vice president of Asia Pacific operations, and Philippe Paillart has been named president of the Financial Services Group.

Statistics:

• Ford shares rose 7.6% to $44.25.
• Visteon generates 90% of its $17 billion in annual sales from Ford.
• GM's North American business accounts for about 70% of Delphi's $26 billion in yearly sales.
• GM plans to distribute up to 20% of Delphi's equity through an initial stock offering.
• Delphi is valued at $13 billion.

Sources:

• Bloomberg News, DEARBORN, Mich.
• William Clay Ford Jr. and Jacques Nasser are quoted directly from the source.
• Maryann Keller, ING Baring Furman Selz analyst, is quoted directly from the source.