Why Edsel pulled out of Ford's garage - Ford Motor Corp.'s president and CEO Edsel Ford resigns - Editorial

Automotive Industries, May, 1998 by Marjorie Sorge

Fords at Ford are constantly under a microscope and have to work longer hours and more weekends just to prove themselves.

I'm pretty sure there are a lot of people in the auto industry who are jealous of Edsel Ford. It's not because his name is on the building or because he's wealthy. It's because he has the courage to restructure his life by leaving the day-to-day operations of the company his great-grandfather built.

Admittedly, his personal fortune and position as a Ford board member make it easier to walk away from his job as president and CEO of Ford Motor Credit. But you can be sure the decision wasn't easy. There's a lot of history here. His father, Henry II, pulled Ford back from the brink of disaster in the 1940s and from that time on was married to the company.

Edsel joined the family firm when he was graduated from college in 1974 and many insiders thought he'd someday head the automaker.

Just five years later when Edsel's cousin, Benson Ford Jr., demanded his late father's board seat, Henry II announced there were "no crown princes" at Ford. "I guess I knew it all along," Edsel says, "although he'd never said it that way and didn't tell me he was going to say it then. It was initially a shock, I wasn't prepared. But it didn't bother me."

Now, at 49, Edsel is looking for a different kind of self-fulfillment.

A midlife crisis? Maybe, but unlikely. Odds are Edsel's career at Ford had peaked and he's decided to do something new. Common speculation says cousin Bill Ford Jr. will become the non-executive chairman of Ford when Alex Trotman retires in 1999. In his new life, Edsel stays on the board and gets a seat on the Organizational Review and Nominating Committee, which includes only outside directors and Trotman and deals with Ford's succession plans. If Bill should become chairman, having Edsel on that committee could create a powerful family team.

The Ford family's B-stock already gives it 40% of the voting rights, but the majority of the stock belongs to the William Clay Ford Sr. side. The elder Ford owns 21.4% of the voting stock and young Bill holds 4.7%. Edsel only has 7.6%. Some speculated initially that Bill has a tighter grasp on the top job because his side of the family holds the most stock, an assumption Edsel denies.

The move out of Ford proper also gives Edsel more say-so in corporate activities than he had in his last position. He hopes to help evolve brand-management marketing and create a gangbuster 100th anniversary celebration when the automaker turns a century old in 2003. "It says something about Ford when members of the family can be part of the committee," he says. "Our name is on the building and all the hubcaps," he jokes.

More time will also be spent on community activities and helping his children grow up. His youngest son, Albert, who just turned six, is a Type One diabetic, who needs insulin often. Ask Edsel what he wants in five years and it's not a new position or more power, it's "a cure for diabetes."

"I want my epitaph to read that I was a great father," he says. "If the Tigers are playing on a Thursday and my kids want to go, now I'm out there, too."

Nor does he care if his kids follow him into the family business. Fords at Ford are constantly under a microscope and have to work longer hours and more weekends just to prove themselves. "My kids are good golfers," he says. "I have visions of huge contracts with Nike and an airplane."

Edsel Ford has done something many executives should do -- stand back and take a look at the complete circle of life and rebalance. It helps companies and people become more productive.

Marjorie Sorge is the editor-in-chief for Automotive Industries. You can reach her via e-mail at: msorge@chilton.net.