The Buddha of Detroit
As an
environmentalist and a devotee of Eastern mysticism, William Clay Ford
Jr. was a most unlikely candidate to head a huge car company. But the
scion was pulling it off -- until the tire crisis made his job a lot
more complicated.
By MARTHA SHERRILL
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Illustration by Anita Kunz.
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ord's
world headquarters, in Dearborn, Mich., occupies a tall glass box of a
building with a grand semicircle of international flags out front. Way
up at the top of the building are the words "Ford Motor Company" in that
familiar dark blue logo with the old-timey script so pervasive in the
lives of everybody everywhere that it has become almost invisible. It's
a talisman of American optimism and desire, of our romance with machines
and of our belief in our own ingenuity -- that we can build our way out
of the imperfect present and into an ideal future.
You can find William Clay Ford Jr. in his corner office almost as
high up as the logo. "Hey, come on in!" he yells out, as he cranks up an
espresso machine. He is jovial, animated and, at 43, young for an
auto-company chairman. He bounces a bit when he walks, like a kid. He
and I were introduced once, years ago -- we have an old friend in common
-- but his exuberance seems to have little to do with me. At Starbucks,
where we met earlier, he was howdy-ing the cashier. Yet there is no
erasing the polish and manners and eccentricity that four generations of
fabulous wealth can bring.
Ford gives me a brief tour of his office -- he has caught me looking
around and wants to explain a few things. Across the room, there's an
acoustic guitar in an open case on the floor. "I play folk music," Ford
says, "old Peter, Paul and Mary -- John Denver -- the kind of stuff
nobody wants to hear." On a wall near the door, there's a photograph of
Ford getting his black belt in tae kwon do, putting one bare hand
through a stack of six cement patio bricks. Along with martial arts, he
embraces acupuncture and homeopathy and has studied yoga as well as Zen
and Tibetan and Vipassana Buddhism. He has been a vegetarian for 10
years. This automobile chairman's most apparent passion, though, is the
environment. "Nature," Ford says, "is where my heart is."
Like its inhabitant, Ford's office seems polite at first glance --
navy blue and mahogany tones predominate -- a bastion of cautious,
clubby Midwestern style. A Remington bronze sits on a table. Pictures of
Ford's wife, Lisa, and their four children crowd every available shelf.
But beneath the conventional trappings, on the molecular level,
something else is going on. Aside from the old burled-maple desk that
belonged to his grandfather Edsel, Bill Ford's office is 100 percent
green. The ceiling, the paneling, the paint. The wood came from
sustainable forests. The leather on the chairs was tanned using a
nonchemical process. As for the upholstery, the curtains and the carpet:
they are compostable, almost edible.
Martha Sherrill is the author of "The Buddha From
Brooklyn," a nonfiction work about a Tibetan Buddhist monastery.
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We walk to the windows and look out at the 200-degree view. The flat
landscape, once open marshland, is now filled with things his family put
there -- a hospital, a museum. Out on the fringes is the Rouge plant, a
1,200-acre complex of seven factories built in 1916 by Henry Ford, which
has long been an icon of 20th-century industry. Ford talks excitedly
about one of his most ambitious projects, a huge redesign of the Rouge.
Last month, the board unanimously approved plans for a new $2 billion
manufacturing site. Ford's aspirations are grand, almost ridiculously
far-fetched. The Rouge will become the site of an industrial revolution,
he says, where cars will be made differently. There's talk of making
totally recyclable cars. Of parts being compostable or reusable. Of cars
being easily assembled, disassembled, then assembled again, like souls
being reincarnated.
Standing at his window, the great-grandson of Henry Ford hovers under
six feet, has pale hair, full lips and large, watchful green-blue eyes
that seem to be slightly off-kilter, like those of a Cubist figure
facing two directions at the same time. It's hard to imagine living
every day with the contradictions of being green inside a beast that's
belching pollution, of being an intellectual in a practical world of
engineers and bottom-liners, of being antiestablishment while working at
one of the most cautious corporations of all time. But perhaps that is
the least of it. Now, as the Firestone tire recall winds down, he also
finds himself an idealist in a situation that has invited general
cynicism, chairman of a company caught up in its biggest
public-relations crisis since the rear-exploding-Pinto debacle of the
1970's.
"I used to wonder if running a large industrial company would really
square with my values," Ford says. It's a reasonable question.
ill
Ford was characteristically optimistic when he first heard, in May at a
board meeting, that there might be "some problems with Firestone tires."
It seemed as if it was a Firestone problem, he thought, not an Explorer
problem. In mid-July, when he heard a bit more, he again assumed the
best -- that Firestone could contain it." What he was hearing wasn't yet
alarming, even if it resulted in a recall. "I hate to say it, but
recalls are a part of our business," he explains.
The seriousness of the situation became more obvious by the month's
end. Ford was planning to attend a Firestone centennial celebration in
early August (in a Shakespearean twist to the drama, his mother is the
granddaughter of Harvey Firestone), and he mentioned the centennial to
the company's chief counsel, John Rintamaki, "in an offhand way," he
says. "And this kind of shows you how unaware I was. I mean, I knew it
was a big deal but" -- and he stumbles a bit when he says this -- and
then John said: 'Oooooooh. You might want to rethink that because I
think this thing's about to blow sky-high."'
Bill Ford wore a union button during his company's negotiations with
the U.A.W. and has had soul-searching talks with environmentalists
about the end of the internal-combustion engine.
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Clearly, the counsel's office at Ford was aware of incidents of
rollovers, because lawsuits had already been settled. Overseas, some
models of Firestones had already been replaced. So how did the chairman
not know? The white noise at Ford -- a corporation with $163 billion in
annual sales -- is an incessant hum of performance reviews, lawsuits,
sales figures. It seems that there wasn't a reliable channel for a faint
murmur -- a statistically unremarkable pattern but a potentially deadly
one -- to rise above the din.
When the recall story broke, on Aug. 8, Ford and Jacques Nasser, the
company's C.E.O. and president, decided that Nasser would be the public
face of the crisis. Traditionally, the C.E.O. handles daily operations
and details while the chairman steers the ship. So it seemed, at least
at first, that the recall problem fell within Nasser's purview. Nasser,
a short man with dark, receding hair, would explain the recall in TV
commercials and testify before Congress. In newsweeklies and on "60
Minutes," he was captured in the "tire room" at headquarters, surrounded
by scores of truck engineers and rubber experts, who had taken over
eight conference rooms. But Ford was nowhere to be seen.
The relationship between Ford and Nasser is difficult for outsiders
to grasp. Their roles are not fixed, but slightly ambiguous. Before
assuming their positions in January 1999, they were asked by the board
to put their job descriptions into words. They never did. John Casesa,
an auto analyst at Merrill Lynch, sums up their roles this way: "Jac
Nasser is paid to do the heavy lifting -- and he's expected by investors
to deliver. Bill Ford is an active, motivated, influential steward for
the shareholders -- not a figurehead."
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Opposites
attract business: Bill Ford, left, and Jacques Nasser share the
reins at Ford Motor. Photograph by Andrew Sachs/Saxpix.com.
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Their personal styles could hardly be more different. Nasser is a
street-smart Australian and a Ford-company lifer -- his nickname is Jac
the Knife because of his reputation for cost-cutting. Ford is the
product of almost incomprehensible privilege -- handmade English
clothes, grand houses in Grosse Pointe, an education provided by
Hotchkiss, Princeton and M.I.T. Nasser began firing deadwood and looking
into the purchase of Volvo as soon as he became C.E.O. Ford, meanwhile,
was driving a battery-operated Ranger pickup when he became chairman,
wore a union button to the office during negotiations with the U.A.W.
and was having long soul-searching talks with environmental activists
about the end of the internal-combustion engine.
Nasser comforts Old Detroit. Ford is unorthodox and makes the auto
industry a little nervous. And yet, by all accounts, together they have
made Ford Motor more dynamic. In the 23 months they have been in charge,
the company has bought Volvo, Land Rover and a major service operation
in Europe, among other businesses. The Ford company's long streak of
rising profits continued under their leadership -- and ended only in
October after the recall hit.
While Nasser ran the company's operations, Ford was busy passing out
olive branches to the company's die-hard critics, and to a large extent
his efforts worked. For the last 30 years, consumer groups have
considered Ford Motor Company to be among the most secretive,
obstructionist, compliance-driven corporations in America. To
environmentalists, it was "like Satan," says Matt Arnold of World
Resources Institute, an environmental think tank. As a member of the
Global Climate Coalition (G.C.C.), a multi-industry group that lobbies
against green initiatives, the company dismissed global warming as a
lunatic conspiracy -- while making huge profits from larger and larger
gas guzzlers. In 1999, the Sierra Club dubbed the nine-seat Excursion
"the Ford Valdez."
Even before his new office was ready, Ford was sitting down with
environmentalists, asking for advice and making course corrections. The
sentiment behind these meetings was real, but Ford also understood the
importance of gestures and appearances, how to communicate good
intentions. He listens carefully, never sounding defensive. "I don't
want you to feel co-opted," he told his former critics. "I want you to
remain honest -- and to hold our feet to the fire."
It took him a year to orchestrate the first auto company pullout from
the G.C.C., last December, and it sent a loud signal to any remaining
naysayers. "It was so huge," Arnold says, "and bought Ford lots of
room." The chairman went to Washington, thanked members of the Michigan
delegation for supporting the work of G.C.C. for many years, then
dropped the bomb. "The climate is changing," Ford said, "and anyone who
disagrees is, in my view, still in denial."
Bill Ford's biggest P.R. coup was the unveiling in May of the
company's first "citizenship report." Nasser and Ford worked hard on the
report, a way for the auto company to address the longtime criticisms of
progressively minded fund managers, environmentalists and others who are
becoming increasingly important voices in the emerging global economy.
In direct language, Ford Motor Company admitted that its popular
sport-utility trucks contributed to greenhouse-gas levels and global
climate changes and were a safety concern for motorists of smaller cars.
The company pledged to create S.U.V.'s that were cleaner and safer --
less of a menace to smaller vehicles on the road.
The first reaction was mixed -- some on Wall Street thought it was
bad business; a Car and Driver editor wondered if Bill Ford was a
"guilt-ridden rich kid." But those most troubled by the report were the
other leaders in the auto industry. It was bad enough to pull out of the
G.C.C., but by discussing S.U.V.'s in critical tones, Bill Ford was
going too far.
The report had more than the desired effect. It caused a sensation of
good press for the company. Never mind that General Motors had very
quietly been setting environmental goals for itself for five years and
keeping them -- or that its trucks have lower fuel consumption and toxic
release than Ford's. "The problem with G.M. is that they've had the
performance but no leadership" on environmental matters, says one
environmental consultant who works with both companies. "Frankly, Ford
doesn't have the performance yet -- but, oh, what a leader. He's way,
way out in front of everybody."
Ford's gift for shaping public opinion made his decision to lie low
during the Firestone debacle all the more conspicuous. He explains it by
saying that the "nitty-gritty of the tire recall" is not his job. As
chairman, his role is to "pay attention to the big picture."
But the big picture is precisely what he missed. He seemed to have
misjudged the magnitude and gravity of the crisis. It wasn't until well
into August that it became apparent to him that his company's reputation
was at stake. Firestone began claiming that the design of the Explorer
-- its thin roof and tendency to roll over -- was a contributing factor
to highway deaths. This warring between the companies resulted in two
Congressional investigations and a dangerous public-relations
predicament for Ford.
Image, reputation -- that ephemeral thing that causes a person to
trust a big company or not, and believe in a product -- is the domain of
the chairman. But Bill Ford had a hard time figuring out when to jump
in. Nasser was called to testify during the Congressional investigations
in early September, and he refused at first -- a move that was
inexplicable. A day later, he relented. At one point, Ford considered
going in Nasser's place but worried that his appearance might make it
look as if Nasser were just "a figurehead," says one adviser. In the
end, by staying away, it was Ford who started looking like a figurehead
instead: the irrelevant green guy, the happy hood ornament, the man with
the name.
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years, Bill Ford avoided thinking about his great-grandfather Henry Ford
-- or reading biographies of him. He didn't want to feel overshadowed,
intimidated. And his method seemed to work. "I never felt burdened the
way I think some of my relatives did," he says, "that they could never
possibly live up to this legacy, so why even try?"
His father, his uncle and his grandfather all worked at the family
company with varying degrees of success. Bill's grandfather Edsel Ford
was the only child of Henry Ford -- and was given the company to run
when he was just 26. He was creative enough to come up with the idea for
the Lincoln Continental but was unable to step out of his father's
shadow, never making the company his own. His father bullied him and
criticized him until Edsel died in 1943 of stomach cancer, an illness
even his widow, Eleanor Clay Ford, blamed her father-in-law for. His
family viewed his life, and death, as tragic. To make matters worse, in
1957 the company named a new car after Edsel -- one that became a
worldwide joke.
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Old Detroit meets New Age: Nasser, left, focuses on
the day-to-day; Ford looks to the future. Photograph by Andrew
Sachs/Saxpix.com.
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Bill's father, William Clay Ford Sr., was a vice president for
styling and design at Ford, for years working under his charismatic and
self-indulgent older brother, Henry II. The younger Ford, who split his
time between cars and football (in 1964, he bought the Detroit Lions),
was regarded as kind, a gentleman, but not a fighter. In 1979, when
Henry II retired and didn't hand over the title of chairman to his
younger brother -- hiring a professional manager instead -- it was hard
to tell whether it even bothered William Sr. "He's never said," Bill
says. "He's very private about his feelings -- unlike me. Sometimes I
think he wonders what gene pool I'm from."
Given the history, the complications -- and his own spiritual and
environmental bent -- Bill Ford wasn't sure he wanted to go into the car
business after graduating from Princeton in 1979. He thought about
teaching or running a foundation -- his personal fortune in Ford stock
was estimated at $185 million at the end of 1999, bringing him millions
a year in dividends alone /- but he was pulled back to Motown instead.
The place was in sad shape. His father had just been passed over for
chairman. "I guess I always felt I owed everything I had to the Ford
Motor Company," Ford says, "so I wanted to help."
He had a litany of jobs -- 17 at Ford in two decades. He was serious,
hard-working, conscientious. In an early job, he called himself William
Clay to avoid undo attention. When he was given an assignment in truck
engineering, he went to driving school to learn to handle 18-wheelers.
He left briefly in the mid-80's to earn a management degree at M.I.T.
and married Lisa Vanderzee, whom he had met at Princeton.
He had been fascinated with Buddhism and Eastern philosophy since his
early 20's, but one of his oldest friends, Mark Higbie, remembers that
his conversations with Ford began to change when they entered their
30's. Their discussions were "deeper and more analytical and
introspective," he says. Ford was interested in religion, philosophy,
psychology -- and he had started reading up on Henry Ford too, a
vegetarian who, as it happens, consulted Eastern mystics. "Bill seemed
to be deconstructing his upbringing, and replacing it with a worldview
very much his own," Higbie says.
His interest in environmentalism was growing, but his early attempts
to introduce recycling and other environmental measures at Ford were met
with derision: "I was so low on the totem pole. I don't think anybody
cared." Once he climbed a bit higher, he was no longer just flaky or a
wealthy meddler; he was threatening. In 1988, at a board meeting, he was
told "point-blank," he says, to stop interacting with environmentalists
completely. He complied.
The Explorer was in development then. Oddly enough, Bill Ford liked
the idea of the S.U.V. -- it suited the outdoorsy life he was always
wishing he had more of. And the contradictions inherent in the
popularity of the Explorer -- a gas guzzler for people who love the
outdoors -- embody Ford's own. On one hand, he loves nature. On the
other, he feels great loyalty to the family legacy -- and is passionate
about continuing it. By 1997, sales from Explorers and Expeditions --
even larger S.U.V's. -- were responsible for half the company's profits.
Historically, there has been friction between Ford management and the
Ford family (which controls 40 percent of the voting stock, worth almost
$2 billion). When Bill Ford was elected to the board in 1988, and gained
allies among board and family members, the tension got only worse. "It
was tough over the years," Ford says. "Very much so. I talked to my
friends and family a lot -- What am I doing here?"
His ascendency was never a sure thing. Many Fords had come through
the company over the years and not wound up chairman. But by the late
80's, Ford had begun to prove himself dependable, efficient and
impatient. He was manager of heavy-truck manufacturing, then director of
business strategy. In the 1990's, he ran the climate-control division,
then was promoted to vice president for commercial trucks. As treasurer,
and then vice-chairman, of the Detroit Lions, he was a successful
negotiator, luring coaches and players and working successfully to pass
a new stadium referendum. In 1995, he left the management side of Ford
to run the board's finance committee.
There are 13 Fords in the fourth generation, and they hold biannual
meetings to discuss family holdings and find ways to vote their
supervoting shares in lock step. (Each share of the family's Class B
stock has 17 times as much voting power as a publicly traded one.) In
the late 90's, as the retirement of the C.E.O. and chairman, Alexander
Trotman, approached, the Fords began plotting. They wanted a family
member, if possible, to head the company. "We talked about it in family
meetings," says Charlotte Ford, who, at 59, is the oldest of the 13.
"Billy never said he wanted the job -- but he never said he didn't
either."
By the end of 1995, it was clear that a candidate had emerged. "He
had the education, the intelligence, the family loyalty," Charlotte
says. "Oh, absolutely, we pushed him to take the position. We wanted him
to be chairman."
But Trotman wasn't thrilled. As his days waned, he tried to name his
own successor, and failed. Finally, in October 1998, when it was
announced that the leadership position at Ford would be shared by two
men -- Nasser and Ford -- Trotman, according to reports of the meeting,
snarled his congratulations across the board room. "So, Prince William,"
he said, "now you have your monarchy."
he
rouge plant is Prince William's new industrial cathedral. It will have a
12-acre roof of native grasses where birds will nest. There will be
skylights and windows. Music will play in factory workrooms. The
architect of the project, which is expected to take 20 years to
complete, is the ecovisionary William McDonough, who promises that the
new factory complex will be "the icon of the 21st-century industrial
revolution." And beside it, the Rouge River will be clean for the first
time in 80 years -- using natural plant life. The Rouge is just the
beginning, Ford likes to say. Hybrid cars are coming, fuel cells,
electric bicycles. Volvo even has a new car that cleans the air while it
drives. McDonough and a partner, Michael Braungart, a chemist, are
working on compostable upholstery fabrics and carpets, new polyesters,
new paints. Together, Ford and McDonough have met with more than 500
suppliers to discuss how cars might be made in the future -- so all
parts could be disassembled and easily reused. "His great-grandfather
gave us the assembly line," McDonough says, a little breathlessly, "and
Bill Ford is going to give us the disassembly line."
McDonough and Ford talk about other ideas too -- about how a car
could be a "product of service," not necessarily something to own.
Rather than sell vehicles, Ford might rent them out by the hour, or the
mile, and provide servicing, insurance, even the fuel. "We're not in the
car business, or the truck business," he says. "We're committed to the
personal-mobility business."
But meanwhile back in the imperfect present, there is a very large
tire problem to solve. Reviews on how Ford Motor has dealt with the
recall are mixed. The company seems to have handled the logistics well,
but its public relations have suffered. Some recent opinion polls show
that consumers blame Ford Motor Company for accidents and deaths almost
as much as they blame Firestone. Sales of Explorers were down 16 percent
in October -- a drop due in part to a shortage of vehicles (production
was halted for three weeks in September), but also no doubt due to
continuing concern in the public's mind about the Explorer's safety.
While government tests of S.U.V.'s show them to have a lower fatality
rate overall than passenger cars -- and the Explorer to have a
significantly better safety record than other compact S.U.V.'s -- the
vehicles have clear weaknesses. The most galling part to consumer groups
is that some of them would have been easy to fix. "It's totally
outrageous to put a roof that crushes easily on a vehicle with a
tendency to roll over," says Joan Claybrook, the president of the
consumer group Public Citizen. "And it's barbaric."
If the company can weather this crisis, time is on Bill Ford's side.
Trends in car-buying are slow trends, and manufacturers can generally
see them coming way out on the horizon. The Firestone recall is expected
to be over by the end of the year, and Bill Ford probably has months to
recoup a sense of public trust. One thing that should help him is his
improbable group of new friends.
"I hate to green-wash the tire tragedies, but Ford Motor Company,
until recently, was the textbook case of a closed, shut, secretive place
-- always securing its own narrow interests," says Bob Massie of the
Coalition for Environmentally Responsible Economies. "But Bill Ford
arrived, and a whole new attitude began radiating from that company."
The Explorer's contradictions -- a gas guzzler for outdoor types --
embody Ford's own. He loves nature, but also feels great loyalty to
the family legacy. And the Explorer makes big money.
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Even Claybrook, one of the leading critics in the Firestone-Ford
investigation, sees the tire recall and the rollover rate of the Ford
Explorer as a legacy of the company's previous management -- and
culture. "Bill Ford has a very different mind-set, much more in tune
with mine," she says. "He cares about public policy as much as he cares
about pennies. And since he owns a great deal of the company, he'll have
more sway and power -- more ability to move and change it."
In the long run -- or in "the long view," as a Buddhist would say --
sometimes a bad thing is the best thing of all. The Firestone recall
might help Ford accomplish his radical goals a little quicker. "Whether
it's synchronicity or karma or whatever you call it," he says, "there's
an interesting confluence of events now, where the very things I believe
strongly in, and have felt my entire life, are now issues that the
corporate world is running into headlong -- so there's an urgency."
When asked where, exactly, he's steering Ford Motor, the chairman's
answer is both loopy and oddly endearing. "I don't know if a company can
have a soul, but I like to think it can," he says. "And if it can, then
I'd like our soul to be an old soul -- and everything that implies. I
like to talk about things like values and soul. These things aren't
transient. These are things you build forever."