Ford, the world's second-largest car-maker, yesterday jettisoned Mr Jac Nasser, its controversial chief executive, and handed the role to Mr Bill Ford, the 44- year-old great-grandson of the company's founder.
The move ends months of intense speculation about internal rifts, deteriorating staff morale, negative publicity linked to the Firestone tyre recall and anxiety over the car-maker's declining financial situation. Ford lost $512 million (€566 million) in the third quarter.
The change also means a member of the Ford family now has undivided responsibility for the company for the first time in 20 years.
Although questions about the relationship between Mr Nasser and Mr Ford have circulated since the board first split the roles of chairman and chief executive three years ago, rumours of Mr Nasser's possible departure reached fever-pitch recently. They were exacerbated by the Ford family's long-standing reputation for quarrelling with the "hired help".
Mr Ford admitted yesterday that the situation was close to "paralysis point for much of our management". He claimed that, until very recently, the company had believed the previous management structure was viable and that his personal relationship with Mr Nasser had remained strong.
But he said that there had been "overwhelming pressure" from various constituents and described the recent media speculation as a "cacophony".
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