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July 15, 1978 - Image 10

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Publication:
Michigan Daily, 1978-07-15

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Page 10-Saturday, July 15, 1978-The Michigan Daily
Friction triggers Iacocca ouster
DETROIT (AP) - The sudden ouster of Leeetroducion of the highly successful Mustang, will
Iacocca as Ford Motor Co. president was touched rdcinothhglyscefuMsagwl
oby ascalating oer s.truglesd f control istay on the payroll until his 54th birthday on Oct. 15
off by an escalating power struggle for control in to give him a bigger pension. But company insiders
the board room of the giant automaker. si hi p abiy w enn' Bu on isie.
But the fall of the one-time management star of said he probably wouldn't be around much.
the world's fourth, largest industrial corporation Already, plans for Iacocca to unveil the 1979
appeared inevitable, given recent reorganizations Musa ng in person to automobile writers on Monday
and the fate of past seconds-in-command at Ford IACOCCA'S SCHEDULED appearance indicated
Motor. that the firing was "a blowup. It was not a carefully
THERE ALSO WERE signs that personal friction planned thing," guessed Arvid Jouppi, an auto
had developed between Iacocca, 53, and Henry Ford analyst who is close to key Ford executives.
II, chairman of the No 2 automaker. It also was apparently a surprise to Iacocca, who,
In a statement distributed by the company in an interview on Wednesday, told The Detroit
yesterday after the board of directors voted News, "I'm still here and as far as I know I intend to
unanimously Thursday to oust Iacocca, the former 3stay here for the foreseeable future." He said his
company president said he was leaving amicably, duties were unchanged since-the June shakeup.
but that "I have not been in complete accord with Iacocca's departure was officially described as a
some of the recent changes in the top management- resignation, but William Clay Ford, brother- of
of the company." Henry, said the board had voted to remove Iacocca
In the same statement, Ford said "substantial "on the recommendation of my brother."
differences have arisen on the subject of how Ford LEE IACOCCA, fired president of Ford Motor Co., The New York Times, quoting a source familiar
should be organized at the most senior level. In the stands in front of a 1964 Mustang, one of his major with a 30-minute discussion in which Ford told
circumstances, I believe Mr. Iacocca's resignation successes. Iacocca of his ouster Thursday afternoon, said
is in the best interests of the company and himself." executive officer. As part of that change, William Iacocca asked, "What did I do wrong?"
me t HlClay Ford, a brother of Henry's, was added to the Ford replied, I just don't like you," the
The men were apparently referring to an April ruling group and put in line to succeed Henry as newspaper said.
1977 shakeup that established the triumvirate o chairman. Iacocca was the ninth of 11 seconds-in-command
Ford, Isacocca and Philip Caldwell at the top of the CALDWELL, 58, thus stood to succeed Henry as at Ford since World War I to be eased or kicked out
company, with Caldwell vaulting over Iacocca to chief executive officer in 1980, with William Clay of the job. Edsel Ford, the current chairman's
become second-in-command. Ford to become chairman in 1982. Iacocca was father, died in 1943 and Robert McNamara became
In June of this year, Caidwell's position was clearly out of the picture. secretary of defense in 1961 after onlyfive weeks as
strengthened when he was made deputy chief Iacocca, the marketing genius behind the 1964 in- Ford president.
PRO-ABORTION GROUPS CRITICIZE C'ALIFANO:
HEW tightens gov't-funded abortion claims

WASHINGTON (AP) - The gover-
nment said yesterday that poor women
seeking federal money to pay for abor-
for
Billiards
at TheUNION
Open 1 P.M. Today

tions in cases of rape or incest must
furnish more proof to back up their
claims.
Joseph Califano, Secretary of Health,
Education and Welfare, (HEW), said
that reports made to police or health
agencies in rape or incest cases must
include the victim's address as well as
her name, and also the date of the in-
cident.
CALIFANO ALSO said that in cases
in which pregnancy is viewed as
severely endangering the woman's
health, the two doctors presently
required to certify the claim "must be
financially independent of one
another."
This, said the secretary, "will

f~ Ann Arbor Ciic Theatre
_ _ _201 S. Mulbolimd off W. Washington
announces
Open Auditions
7:30 pm Sunday. July 16, Monday. July 17. Wednesday. July 19 for
"You Can't Take It With You"
by GEORGE S. KAUFMAN and MOSS HART
R Goles available.all a moleand female lescept children)
ALL WELCOME EVERY NIGHT
Production Dae.s: 5.ptounbor . 7. &and 9

eliminate the most obvious conflicts of
interest."
Califano said he was amending the
regulations he issued on Jan. 26 on
abortion funding. He said the change
was in line with more than 304 public
comments on the rules and a directive
from Congress that the HEW secretary
"rigorously enforce" restrictions on
paying for abortions otherwise covered
by Medicaid and other federal health
programs.
PRO-ABORTION groups sharply
criticized Califano's action, charging
that he was tightening regulations that
already are so strict that poor women in
many states are unable to obtain
government-funded abortions.
Califano, who says he personally
abhors abortion, had drawn praise
from the same groups last January for
what they viewed as a fair inter-
pretation of the law Congress passed
last Dec. 7 on abortion funding.
That measure, approved after a bit-
ter and prolonged fight between the
House and Senate, permitted funding of
abortions in only three cases when a
full-term pregnancy would endanger
the mother's life; when rape or incest
cases reported "promptly" to a law en-
forcement agency or public health ser-
vice, or when two physicians determine
that the pregnancy would cause
"severe and long-lasting physical
health damage to the mother."
CALIFANO interpreted "promptly"
as meaning within60 days of the rape or
incest, and he said-he report could be
made through a police chaplain's office
ora rapecrisis center.
An HEW spokesman, John Blamphin,
said Califano was not acting in response
to. reports of any abuse of the
regulations. He also said the gover-
nient doesn't know how many abor-
tions it is paying for. The procedure for
the states to report this information to
Washington was set up but has not
begun because the Office of
Management and Budget has .not yet.

CINEMA II
presents
LOUSI MALLI'S
Murmiur of the Heart
As with most of Malle's films, the edge of corruption is
ever-present. Set in France in 1954 in the home of an upper-
class family, the film deals with the rites of passage of a
secluded adolescent boy. Often hilariously funny, it re-
mains a sensitive portrait of growing up with Mom and,
Charlie Parker. 1972.
7:30&9:30 A ,dRAngeNO$I.50

Califano
approved it, Blamphin said.
Cory Richards, a policy analyst for
Planned Parenthood Inc., called
Califano's actions "completely
outrageous. It implies there's a need to
tighten the regulations because of
abuse. I'd like to know what infor-
mation he has that there has been abuse
or a potential for abuse."
Richards said he had obtained infor-
mation compiled by HEW but not
released to the public which showed
that Medicaid abortions decreased by
98 per cent in nine states that have
adopted the federal language in their
own laws.
In Alabama, Arkansas, Maine,
Mississippi, Montana, Nevada,
Oklahoma, South Carolina and :Texas,
only 31 abortions were paid for in the
first four months under the new
regulations, compared with more than
2,300 Medicaid abgortions in fiscal 1977,
hesaid.
"It shows that last year's so-called
compromise on abortion is really no
compromise at all, but tantamount to a
' complete ban," Richards added.

14

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