Post by TonyV on Dec 8, 2009 3:07:28 GMT -5
Hinrichs becomes a Ford success story
Bryce G. Hoffman / The Detroit News
Joe Hinrichs faced a tough choice in 2000 as he contemplated returning to the auto industry after a stint in private equity: go back to General Motors, which helped put him through college and gave him his first job, or accept an offer from Ford Motor Co.
Both automakers offered plumb manufacturing assignments, but Ford won over the young executive by promising an opportunity to grow beyond running factories.
Last week, the Dearborn automaker made good on that pledge when Hinrichs took over as president of Ford's operations in Asia Pacific and Africa, including its partnership with Japan's Mazda Motor Co.
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"It's an exciting opportunity," Hinrichs, 42, told The Detroit News in an interview Monday. "We have three business units. To get an opportunity to run one of them is a special honor. A good portion of the growth in the industry is occurring in Asia. That provides a lot of challenges, but also a lot of opportunities."
Hinrichs oversees the region of the world that is arguably most critical to Ford's future success.
The emerging markets of Asia are the future of the global automobile business. Earlier this year, China surged past the United States to become the largest auto market in the world in terms of sales volumes. India is one of the fastest growing.
Ford was a late entrant into this fiercely competitive arena and has been struggling to catch up. It will be up to Hinrichs, considered one of the automaker's rising stars, to close the gap.
"We've had other corporate priorities," Hinrichs acknowledged.
"Now that we're seeing really strong progress in North America, we can focus some more of our corporate attention and resources and bring all the power of Ford around the globe to our business in Asia."
Ford's Asia push comes as GM, Detroit's other global player, handed control of its more established Chinese operations over to joint-venture partner Shanghai Automotive Industry Corp.
China requires foreign companies that want to do business there to have a local partner. Most joint-ventures are 50-50, but last week GM gave up 1 percent of its stake in the SAIC venture, taking GM down to 49 percent.
Hinrichs called that "an opportunity" for Ford. And he knows about opportunities.
After 10 years at GM, Hinrichs left the auto industry in 1998 to become a partner with Ryan Enterprises Group, a private equity firm in Chicago that specialized in manufacturing.
There, he had an opportunity to focus on the strategic side of business, hone his financial skills and run an auto supplier. But he missed the auto industry and decided to come back after Ryan sold the supplier.
"It's the ultimate consumer product business," Hinrichs said of the auto industry. "At the same time, it has a big impact on the economy and on communities."
David Cole, chairman of the Center for Automotive Research in Ann Arbor, said Hinrichs' mix of financial experience and manufacturing background makes him an executive to watch.
"He's being groomed for an even more senior position, and it's absolutely essential that he get more global experience," Cole said. "There is no doubt in my mind" that Hinrichs could end up running Ford some day.
Hinrichs previously was group vice president of global manufacturing and labor affairs. He played a key role in negotiating a game-changing contract with the United Auto Workers in 2007 that significantly reduced labor costs, as well as subsequent deals that have helped Ford close the cost gap with foreign automakers operating in the United States.
He said the lessons learned in those talks will come in handy in Asia, where Ford relies heavily on its joint-venture partners.
"The UAW-Ford relationship is a partnership, and in a partnership you have to understand what both parties' interests are, what both parties' objectives are, and the ultimate challenges are to find solutions that work for both parties," Hinrichs said. "That's true for our joint-ventures in China. That's true of our ongoing relationship with Mazda. It's true for working with governments, which are all important parts of the assignment in Asia."
bhoffman@detnews.com (313) 222-2443
Bryce G. Hoffman / The Detroit News
Joe Hinrichs faced a tough choice in 2000 as he contemplated returning to the auto industry after a stint in private equity: go back to General Motors, which helped put him through college and gave him his first job, or accept an offer from Ford Motor Co.
Both automakers offered plumb manufacturing assignments, but Ford won over the young executive by promising an opportunity to grow beyond running factories.
Last week, the Dearborn automaker made good on that pledge when Hinrichs took over as president of Ford's operations in Asia Pacific and Africa, including its partnership with Japan's Mazda Motor Co.
Advertisement
"It's an exciting opportunity," Hinrichs, 42, told The Detroit News in an interview Monday. "We have three business units. To get an opportunity to run one of them is a special honor. A good portion of the growth in the industry is occurring in Asia. That provides a lot of challenges, but also a lot of opportunities."
Hinrichs oversees the region of the world that is arguably most critical to Ford's future success.
The emerging markets of Asia are the future of the global automobile business. Earlier this year, China surged past the United States to become the largest auto market in the world in terms of sales volumes. India is one of the fastest growing.
Ford was a late entrant into this fiercely competitive arena and has been struggling to catch up. It will be up to Hinrichs, considered one of the automaker's rising stars, to close the gap.
"We've had other corporate priorities," Hinrichs acknowledged.
"Now that we're seeing really strong progress in North America, we can focus some more of our corporate attention and resources and bring all the power of Ford around the globe to our business in Asia."
Ford's Asia push comes as GM, Detroit's other global player, handed control of its more established Chinese operations over to joint-venture partner Shanghai Automotive Industry Corp.
China requires foreign companies that want to do business there to have a local partner. Most joint-ventures are 50-50, but last week GM gave up 1 percent of its stake in the SAIC venture, taking GM down to 49 percent.
Hinrichs called that "an opportunity" for Ford. And he knows about opportunities.
After 10 years at GM, Hinrichs left the auto industry in 1998 to become a partner with Ryan Enterprises Group, a private equity firm in Chicago that specialized in manufacturing.
There, he had an opportunity to focus on the strategic side of business, hone his financial skills and run an auto supplier. But he missed the auto industry and decided to come back after Ryan sold the supplier.
"It's the ultimate consumer product business," Hinrichs said of the auto industry. "At the same time, it has a big impact on the economy and on communities."
David Cole, chairman of the Center for Automotive Research in Ann Arbor, said Hinrichs' mix of financial experience and manufacturing background makes him an executive to watch.
"He's being groomed for an even more senior position, and it's absolutely essential that he get more global experience," Cole said. "There is no doubt in my mind" that Hinrichs could end up running Ford some day.
Hinrichs previously was group vice president of global manufacturing and labor affairs. He played a key role in negotiating a game-changing contract with the United Auto Workers in 2007 that significantly reduced labor costs, as well as subsequent deals that have helped Ford close the cost gap with foreign automakers operating in the United States.
He said the lessons learned in those talks will come in handy in Asia, where Ford relies heavily on its joint-venture partners.
"The UAW-Ford relationship is a partnership, and in a partnership you have to understand what both parties' interests are, what both parties' objectives are, and the ultimate challenges are to find solutions that work for both parties," Hinrichs said. "That's true for our joint-ventures in China. That's true of our ongoing relationship with Mazda. It's true for working with governments, which are all important parts of the assignment in Asia."
bhoffman@detnews.com (313) 222-2443
