Ford Australia chief resigns

Ford Australia President Bill Osborne has announced his resignation. Osborne, who only took the reins at the local Blue Oval operation in February will return to the USA to accept a position as CEO of a private company "outside of the automotive sector".

The shock announcement was made this afternoon after news of the 31-year veteran of the auto industry's resignation started to circulate within the Ford Motor Company. No replacement for Osborne has been named.

Osborne told the Carsales Network that decision was a very personal one. He stated it in no way reflected dissatisfaction or a lack of ongoing confidence in Ford Australia, or the Ford Motor Company as a whole.

"I remain a Ford stockholder and retain the upmost confidence in the company. What's happened, frankly, is an opportunity has presented itself to me and it's an opportunity I have been preparing for the whole of my career -- an opportunity that I thought would come later in my life... It's unfortunate it comes at a time of great challenges in the industry, but it is no way related to them..."

Osborne said the decision to leave Ford Australia had left him with "a mixture of sadness and excitement."

He could not elaborate on the new position, citing US corporate securities rules but said the negotiations regarding the post had been in train for the "last several months".

He said the decision had not been hastened by the worsening sales performance of Ford Australia. (Just yesterday it was leaked the company would shed more workers from its Geelong operation -- more here)

"Not at all... What I meant by a mixture of sadness and excitement is I'm sad to be leaving Ford Australia. I believe we've got a good strong team in place and a plan to be successful in the future.

"I can't tell you just how difficult this decision is... This is a fantastic company and a fantastic team. I retain 100 per cent confidence in Ford Australia. The difficulties being faced by Ford Australia are being faced by every manufacturer. They're not endemic to Ford; they're endemic to how difficult this industry is...

"I would not consider leaving the company but for this specific, unique opportunity to become the CEO of an independent company. Even with that it's been a very difficult decision... And today I can't tell you I'm not saddened."

Osborne says the main legacy of his short tenure are the stepping stones for a better relationship between Ford and its dealers and Ford head office's sign off on a new business plan for the local carmaker.

"I think I've put the company on the road to better, more transparent relationship with our dealers. I've tried to be very open and honest with our relationship with the dealers.

"And I think we've put together an excellent business plan to put the company on sound footings in the next few years. Obviously there have been elements of the plan we haven't been able to reveal to you, but since I've come onboard we have launched and got approval for a different business plan for Ford Australia.?

Osborne said the rapid change in the market around consumer preferences and rising fuel prices predicated the change.

In Ford's official announcement, John Parker, Ford Motor Company Executive Vice President of Asia Pacific and Africa, said Osborne would depart in effective September. The statement said his replacement "will be announced in due course."

"Bill has made significant contributions during his career with Ford Motor Company, and we wish him and his family all the best with his future endeavour," said Parker.

Osborne was not clear on exact timing.

‘We're working out the transition details as we speak," Osborne told the Carsales Network.

"Obviously once there's a successor identified we'll be able to put a plan together. I don't intend on hanging around for months and months. This team needs to get on with new leadership and be able to execute [the plans] without me in their way."

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