Ford denies rumours of rifts and dissension

Ford is keen to draw a line under the controversy surrounding Sir Nick Scheele, its chief operating officer, and his decision…

Ford is keen to draw a line under the controversy surrounding Sir Nick Scheele, its chief operating officer, and his decision to order all the firm's marketing and advertising business to be handled by the London-based advertising agency WPP. The decision has been reversed after an internal probe found it violated internal purchasing policy.

The development prompted speculation of rifts within senior management and fuelled doubts about Sir Nick's authority as Ford attempts to accelerate a $9 billion restructuring. Ford's board of directors met on Thursday, as scheduled each month, apparently with Sir Nick's predicament left off the agenda. However, it was not clear whether the issue was discussed informally.

Earlier, Sir Nick issued an e-mail to employees to call on the company to draw together and fight "scurrilous" rumours of a split in senior management. He was at pains to denounce reports that David Thursfield, head of purchasing and international operations, orchestrated leaks of Sir Nick's WPP decision.

"Such stories are beneath contempt but, in view of what is being said, I feel that I have to address them," he said. "Should you ever hear a rumour that David and I are in competition, I ask that you intervene quickly and directly and stamp it [the rumour]out. It is simply untrue."

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Some within Ford fear that the WPP decision was leaked by a former senior Ford employee bearing a grudge against Sir Nick or the company. "There is a group of people who meet, sort of like 'the old quarterbacks'. Somebody's obviously got a vendetta," said one company insider.

Some executives were forced to leave Ford in late 2001 when Jac Nasser, former chief executive, was ousted at the instigation of the Ford family, which controls the company.