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Ford mulls shakeup
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June 4, 2001: 8:54 a.m. ET
Move could result in new senior role for key European executive, Scheele
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NEW YORK (CNNfn) - Ford Motor Co. is mulling a management shakeup amid concerns over product quality stemming from the Firestone tire controversy, according to a published report Monday. The shakeup could include a new senior management role for a key executive behind the company's European revival.
Ford (F: Research, Estimates) Chairman William Clay Ford Jr. and other directors are considering management changes under CEO Jacques Nasser. The company's reputation for quality has suffered due to last year's recall of 6.5 million Firestone tires that came as original equipment on Ford's Explorer sport/utility vehicles, the Wall Street Journal reported Monday.
The tires initially were blamed for rollover accidents that caused hundreds of injuries and fatalities. But Firestone has tried to pin the lion's share of the blame on Ford, whom it claims required too low tire pressure for the Explorer. Firestone also branded the Explorer as unstable.
The controversy continued last month when Ford and Firestone ended a century-old relationship and Ford recalled an additional 13 million Firestone tires. Congressional hearings on that recall are scheduled for later this month.
The changes, which many anticipate will come after the Congressional hearings, reportedly could involve moving Ford of Europe Chairman Nick Scheele to Ford's Dearborn, Mich., headquarters, people familiar with the situation told the Journal.
Scheele, 57, led a major turnaround at Jaguar throughout the 1990s and has launched key new models to help Ford regain European market share.
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But Wall Street is certain to scrutinized any major changes for their effect on Nasser, who reports to William Ford, who in turn represents the Ford family's controlling 40 percent voting interest in the company. William Ford publicly supported Nasser's handling of the Firestone controversy last month, and has said he would not replace him as CEO.
Ford's shares closed up 24 cents at $24.59 Friday. 
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