Joe Laymon, group vice president of corporate human resources and labor affairs. “He turned around Lincoln Mercury and is in the process of repositioning the Ford Division. There will be a significant need for marketing [throughout the company], and do not be surprised if Darryl is at the top of that space.”
The 56-year-old was recognized as one of BLACK ENTERPRISE’s 75 Most Powerful African Americans in Corporate America in February. At that time Hazel was president of Ford Motor’s Lincoln Mercury Division (LM), which accounts for some 2.2% of the parent company’s market share versus 15.6% for the division he currently manages.
As LM’s president, he increased the number of products brought to market, adding seven new nameplates in 14 months. He also revamped the brand’s marketing campaign, quality control, and customer service operation. According to the J.D. Power and Associates 2005 Customer Service Index, Lincoln ranks highest in customer satisfaction for dealer service. For achieving such phenomenal growth and serving as a force for revitalization and renewal within his company, BE has named Darryl Hazel our 2005 Corporate Executive of the Year.
BIG CHALLENGES, BOLD SOLUTIONS
There’s no doubt Ford has seen better days. Standard & Poor’s expects Ford’s automotive revenues to grow a mere 1% to 2% on the introduction of new products and on greater average revenue per vehicle. S&P maintains a sell rating on Ford shares based on its eroding market share. The stock, which traded as high as $30 in 2001, spent most of July hovering between $10 and $11.
The automaker is beset with challenges. After a dismal performance in the first half of the year, Ford may lay off up to 30% of its white-collar workforce — about 10,000 of its 35,000 salaried workers — in North America over the next few years. Contract agreements with labor unions will mean rising healthcare and pension costs. If interest rates edge up as expected, financing a new vehicle will be less attractive to consumers, and more creative strategies will be needed to sell off inventories.
There’s also fierce competition from foreign and domestic auto manufacturers. General Motors walloped Ford this summer. In June, GM announced it would give consumers the same discount as its employees, driving vehicle sales a staggering 41% that month. Both Ford and DaimlerChrysler now offer similar deals and, as a result, sales rebounded in July.
But Ford can’t win market share in a no-holds-barred pricing war. The automaker must reshuffle its product offerings. In fact, Hazel has been one of the most vocal executives about Ford’s addiction to trucks and SUVs, staunchly advocating reinvestment in passenger cars. “Part of our challenge is to retain and move forward faster than the competition as far as innovating where we’re strong,” says Hazel. “We’ve now opened up another chapter where we’re spending more resources and more time on cars.”
Such maneuvers, however, won’t be easy to pull off. The market for passenger cars is dominated by Japanese manufacturers, including Toyota Motor Corp. and Honda Motor Corp., according to Michael Robinet, vice president