Don Winkler, a group vice president and chairman and chief executive officer of Ford Financial, resigned Dec. 14 from Ford Motor Co. in what Ford said was "a mutual decision." Winkler joined the company in October 1999 as chairman and CEO of Ford Credit.

The new CEO of Ford Motor Co., William Clay Ford Jr., has appointed Greg Smith CEO of Ford Credit. Smith was president and chief operating officer of Ford Financial, and vice president, Ford Motor Co., and will now be responsible for the operations of Ford Financial.

The top-level change at Ford Credit comes shortly after the parent company reported it would lose about $900 million in the fourth quarter. Bad loans and lease residual losses, along with expenses associated with zero percent financing incentives, were blamed in part for the shortfall.

Ford Credit, the biggest part of the parent company's financial operations, has more than $202 billion in assets -- loans and investments -- making it one of the largest lending institutions in the country. It helps to boost Ford car and truck sales by financing

purchases and makes commercial loans, with more than 10 million customers in 40 countries.

Interviewed for F&I Management and Technology Magazine's December 2001/January 2002 issue, Smith as president and COO of Ford Credit said the company had recorded several all-time record days of product and service sales during the height of zero percen financing in October, and had risen in sales and satisfaction ratings in the latest J.D. Power and Associates survey.

Winkler was brought from the top post at Bank One's Banc One auto finance subisidiary to the Ford Credit helm by former Ford President and CEO Jacques A. Nasser in October 1999.

Nasser's ouster in October 2001 after severe quarterly sales and profit losses by Ford Motor Co. paved the way for Winkler's exit, although Ford Credit itself raised its third quarter profit to $389 million.

Promoted to president of Ford Credit only last summer, Smith, 50, boasts a record of 28 years with Ford and Ford Credit. His immediate challenge, according to Ford analysts, is to reverse the "bad loan" problem.

Winkler and Smith both appeared at Ford's annual holiday party for the media on Nov. 26 and neither gave any sign of an imminent shakeup. In fact, Winkler, 53, had recently been promoted to group vice president of Ford Financial, in addition to his Ford Credit chairmanship, soon after Bill Ford replaced Nasser as CEO of Ford Motor Co.

"Dealers never felt comfortable with Don," said Ralph Seekins, a Ford dealer in Fairbanks, Alaska, who is chairman of Ford's National Dealer Council. "He pushed us hard for penetration increases and exclusive use of FMCC for loans, leases and service contracts."

In another blow to Winkler, he was asked after Bill Ford's rise to chairman to report to the company's new vice chairman, former Wells Fargo CEO Carl E. Reichardt, a long-time Ford director. Previously, Winkler had reported directly to Nasser.

A student of business problem-solving, Winkler vigorously pursued equal opportunity hiring and promotion policies at Ford Credit. He was scheduled to give a deposition early in 2002 in a highly publicized discrimination suit against Ford Credit by a white Ford Credit human resources manager who left the company after a promotion turndown.

While at Ford, Winkler became known for his business strategies and his efforts to overcome dyslexia and helping others with the affliction.

Smith plans to lead the Ford Credit team at the National Automobile Dealers Association (NADA) Convention in New Orleans, Jan. 26-29. He serves on the board of the FordDirect Web site that is co-owned by the manufacturer and its dealers.

A native of Toledo, Ohio, Smith joined Ford in 1973 as a truck operations engineer. He switched to marketing plans at Ford Division in 1987 and in 1989 moved to Lincoln Mercury as Dallas district operations manager. He joined Ford Credit in 1994 as vice president of new business development, diversified operations.

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