Henry Ford
chairman of
Los Angeles Times
DEARBORN - In a surprise
move that makes a Ford family mem-
ber the front-runner to eventually as-
sume the top job at Ford Motor Co., a
*great-grandson of founder Henry Ford
was named yesterday as head of the
auto maker's powerful finance com-
mittee.
William Clay Ford Jr. will take the
post Jan. 1 when it is vacated by his
father William Clay Ford Sr., the 69-
year-old brother of the late Henry
Ford lI.
The step puts a young member of
Fhe Ford clan in position to oversee
the company's purse strings and to
prove his mettle as a finance manager
to top auto executives, Wall Street
and the family, which controls 40
percent of the company's stock.
A Ford family member has not run
the company since 1980, when Henry
Ford II stepped down as chairman.
Prior to that, a Ford had headed the
company since it was founded in 1903.
Under pressure from the Ford fam-
ily, the company has been grooming
both Edsel B. Ford II and William
Ford Jr. for senior management jobs
at Ford. Industry experts speculate
that one of the Fords is likely to suc-
ceed chairman Alex Trotman when
he retires at the end of the decade.
Trotman said the board consid-
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The Mich gn ) y Fri ny, September 9, 1994 - 7
s great-grandson named
auto company's finances
Industry experts
speculate that one of
the Fords is likely to
succeed chairman Alex
Trotman when he
retires at the end of
the decade.
ered both Fords for the finance com-
mittee position, but would not com-
ment directly on why William Ford
Jr. was chosen over his older cousin.
"Bill has a great deal of experi-
ence on both sides of the Atlantic,"
Trotman noted. "He knows how Ford
ticks. He is well qualified for his new
job."
"It's clearly a win for William Jr.,
and it's a setback for Edsel," said
Eugene Jennings, professor emeritus
of business management at Michigan
State University.
The two Fords, both of whom are
directors and finance committee mem-
bers, downplayed the rivalry, how-
ever.
Edsel Ford, a vice president and
son of Henry Ford II, will continue as
chief executive of Ford Motor Credit
Co., while William Ford Jr. will re-
sign as vice president of Ford's com-
mercial truck vehicle center to take
on his new finance duties.
"This suits Billy, this suits me,"
said Edsel. "They are complementary
roles for both of us."
William Ford Jr. agreed and said
not too much should be read into his
promotion. "I don't think this pre-
cludes anything or includes anything,"
he said when asked if he hoped this
would lead to the Ford chairmanship.
Speculation that a Ford family
member would ascend to the chair-
manship of Ford has abounded since
1989, when Edsel Ford publicly com-
plained he was being passed over for
important managerial positions.
The spat led that year to the early
retirement of Donald Petersen as
chairman and an effort to provide a
clear path of advancement for the two
young Fords.
"Eventually, one of these two
gentlemen will run the company,"
said John Casesa, an analyst with
Wertheim Schroder, aNew York bro-
kerage. "It still is a family-run com-
pany."
The finance committee has been
chaired by a Ford since 1979, when
Henry Ford II took the job. With his
death in 1987, Henry's brother Will-
iam Ford Sr. assumed the post and has
held it ever since.
Kmart plans to close 110 etome nudig a one n 0ero~
3 e
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DETR OIT (AP) - Km att Corp.
announced yesterday it wi shutter
1 10 stores in 30 states and elinte
6,000 jobs in a restructuin tha r
flects the intense. comn tion 'n th
retail business.
Investors welcomed the rmo a hid-
ding stock in the nation's N. 2
tailer up 75 cents per share to
by late morning. t w as the mot ac-
ively traded stock on the New o
Stock Exchange early yesterdcy.
But retail industry an dvsts c n-
tioned that, while the c'ouings r en
important step in the ri ght orcetion a
true recovery for Kmart longe on a,
switch to larger, more modern Stores
like those of archrival Wal-Mat
~These moves by themselves wil
not solve Kmart's problems." said
Joseph Ronnig, an analyst with the
investment firm Brown Broters
Harriman in New York.,
He said the severity of the cts
sent an important message to inves-.
tors that management was se rious
about making changes.
"I think it is a sign that Kmart i
coming to grips with the situation.,'
Ronning said. "Many of the stores
were not competitive vehicle<.
"It's a tough decision bor tue
company to m ake," said W alki r
Loeb. a retail analyst and consutarm
in New York. "Will they catch up to
Wal-Mart? I don't think so. WIl
they be a discount store in iteii own
right? I think they can."
Kmart Chairman Joseph Antonii
broadcast the changes at 8:30 n.m hy
satellite to all the retailer's discount
stores. The managers of the stores
being shut down were notified of he
decision in meetings earlier in the
mom on
"It's :i very emotional time lot
us.' laid Jun PhiUips. manager at he
Kmart in Norfolk. Ne,one of for t
close in the state. "YOU can just imag
ne th. reaction. just came out oftme
T e changes, an eFfort to keep
pace agar nst competition from bay-
ton Hudson Corp.'s Target division
and the niation's largest istailer, Wal-
Mart Stores Inc., also includes a 10-
pet renm cut in the management force.
Those cuts -a total of 2,300 jobs
-- wiH! be made over two years. in-
cluding 650 store man agers who will
lose theii jobs immediaely as a result
ol the store closings. Knirt Corp.
cm ploy a total about 260,000 people
wordwide,
Fight f the 110u stores have at-
ready shut down. said Kmart spokes-
woman Mary lorenc,. The remain-
der wil ctosc jes after Christmas in
. ' ...-
January and February 1995. The clos-
igs represent 4.7 percent of Kmart's
2,348 discount stores.
Operations in Indiana and Texas
will get the biggest hit, losing 12
stores in each states.
The closed stores had failed to
meet the company's required level oF
return on its investment. Most are in
markets that are too small to suport
the competition they face.
'~ t
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Roadway Package System, a small package
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Davis and Fajen, P.C.
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No phone calls please.
SCHOOL CHILDREN supervisor. 3-6 p.m
M-F. Go Like The Wind Motessori School
747-7422.
SEEKING RESPONSIBLE nurturing
aretaker for my newbom. Mon.-Thur. earln
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SiTTER/DRIVER for 2 girls ages 6 & 11.
M-F (flex.) 3-6 p.m. Exp. driver, safe car, en-
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SOCCER COACHES wanted. Coach 5-?
yr. olds Wed. eves. &/or Sat. momings. Eam
dttra cash. Call 913-6009 ASAP.
UDENT to clean faculty house four hours
a week. Call Nick Dirks 665-2748.
STUDENTS WANTED to hand out flyers
between classes for Fall Semester 1994. $5
per assignment (approx. 30 min.), flexible
schedule. Call Supreme Course Transcripts ai
996-2386.
STUD)ENTS WANTED) - The University
Health Service's Peer Education Proram
need students to educate students about
contraception, alcohol and other drugs, heal-
thy and disordered eating, safer sex and stress
and time management for 94/95 academi
r. Especially encouraging application
m men, people of color, gay men, lesbians
and bisexual people. Limited openings
available. Deadline for applications is
Tuesday, September 13, 1994. For furthei
information, call 763-1320.
STUDENTS, DO you want a flexible jot
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Original 60's Sub & Pizza Shop. Hiring part
time. Annly in nerson at 3135 Oak ValleN
SUB WAY-NORTH CAMPUS 1701
Plymouth Rd. part-time. Competitive wage,
flxble hrs. Free meals, uniforms. Apply ir
person.
SUPERVISOR for after school program
Monday - Friday 2:30 - 6:00. Sept. - June
Must have 60 college credit hours. $7.50/hr
Prior experience helpful. 761-2576. Leave a
message.
TANFASTIC TANNING Spa has im-
mediate part time openings. Apply in person
545 E. Michigan Ave. Saline (Ten minute,
south of Briarwood Mall).
TEACHER NEEDED IN accredited pre-
school program.Experience/education
preferred. 30 hrs./wk. $6.50 - $7.00/br. Call
663-9753.
THE PERFECT part-time student job. Bike
& driver couriers needed for campus build-
ings in Ann Arbor area. Flexible schedule.
Use your own bike. Drivers must have
chauffer's license & clean driving record.
Vehicle provided. $6/hr. & on-call pay. 971-
3616.
TRAVEL ABROAD AND WORK. Make
up to $2,000-$4,000+/mo. teaching basic
conversational English in Japan, Taiwan, or
S. Korea. No teaching background or Asian
languages required. For information call:
206/632-1146 ext. J55981.
TUTOR FOR 9T H GRADE girl in Algebra
& English, (Spanish optional) in my home
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U-M BEHAVIORAL MEDICINE program
is seeking participants for smoking cessation
study for smokers with the blues. Free
treatment. At least 20 yrs. of age. Call Joan at
998-6423.
UNIVERSITY CATERING seeking part-
time help w/flexible hrs. to book catering
events. Computer skills, typing & phone
answering experience helpful. Call 764-2142.
WARM EXPERIENCED BABYSIT1TER
needed for our 5 & 8 yr. old. 1 wknd.eve-
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own transportation and references. Call 769-
2875.
WE HAVE AN EMPLOYMENT oppor-
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product. CAREER/NET is a soft ware
product that links students looking for
employment w/ over 10,000 potential
employers quickly & easily, in the format
employers have requested to see it. Support-
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advertising campaign, on & off campus.
These immediate positions are designed to fit
student's desire to eam. Please fax resume
now to CAREER/NET, Attention Keith
Knapp. 616/344-0186 or call 1-800/
4030JrB.
WORK FOR ACADEMIC CREDIT or
volunteer at U of M's Pound House
Children's Center during Fall or Winter
terms. Join hundreds of past students in a
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Please call 764-2547 for more information or
to arrange a visit.
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Promote ecological solutions. Canvass for
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WORK STUDY office jobs for students with
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WORK STUDY POSITIONS available at
Career Planning and Placement for 1994-95.
*Peer Advisor Positions
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3200 SAB 763-1363.
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4S
Arm Ar or
teachers'
Ihe Associated Press
Ann Arbor teachers and school
board officials prepared yesterday to
net in court.
Teachers in Ann Arbor public
scos remained off the job yester-
day.- A state mediator was to ineet
w . aunion and district officials
then he Ann Arbor Education As-
soci .mon approached theschool board
WN'.dnesday night with a proposal to
send teachers back to the classroom
wlze negotiations continue.
the bargainers had tentatively
agreed }Monday on a 3.1-percentsal-
any increase, but other items such as
health insurance premiums and the
second year of the contract remained
at issue, the AAEA said in a state-
The school board had sought a
court injunction Tuesday to force the
district's 1,18(0teachers back to work.
And seven, Ann Arbor residents
filed a separate lawsuit against both
the district and the teachers to force
the srikers back to work. It also seeks
unspecified damages to make up for
the loss to taxpayers, parents,.stu-
dent and teachers.
Washtenaw County Circuit Jdge
Pat riek Conlin scheduled Friday her-
ins on both lawsuits.
Ann Arbor teachers went on strike
Aug. 29, the day they were to report to
work. The district's 14,788 students
were to begin classes Aug. 30.
evorkian appeals
suspension of
California license,
assisted suicide ban
LOS ANGELES (AP)-Dr. ack
Kevorkian is appealing the suspen-
sion of his California medical license
and challenging the state law that
prohibits physician-assisted suicide.
"'We're challenging the constitu-
tionality of the statute in California
which makes it a crime to assist an-
other person in a suicide. We're also
seeking a declaration that the revoca-
tion of Dr. Kevorkian's license was
improper," attorney Lawrence Silver
said yesterday.
The Medical Board of California
revoked Kevorkian's license to prac-
tice in the state because he assisted
with live suicides in Michigan. The
license, issued in 1957, was suspended
in 1993 and then formally revoked
July 29.
Silver on Wednesday filed appeals
of the license revocation in both state
Superior Court and U.S. District
Court, which has jurisdiction when
an out-of-state person, like Kevorkian,
has a dispute with another state.
"We'll defend the action that we
tok in revoking his license," said
Dixon Arnett, executive director of
the Medical Board in Sacramento.
Arett said Michigan authorities
contacted him in 1992 and said they
had suspended Kevorkian's license
and wanted to block the doctor from
practicing anywhere. Those authori-
ties told Arnett that Kevorkian was
running about Michigan waving his
Calfornia license, pointing to the fact
he is a licensed physician." Although
licensed, he adn't practiced in Cali-
fornia for years.
Silver also fled a federal lawsuit
in V.S. District Court challenging the
constitutionality of the state's prohi-
bition of assisted suicide, in light of
federal constitu lonal protection of
t-he right to privacy.
Theactions allstem from the same
objection.
"They should not have revoked
hisliesbeae what he did, hie
s zi esta f chigan. Every-
thing he has done in Michigan has
been legal in Michigan," Silver said.
Arnelt said that interpretation is
based only on court decisions that
came years after the assisted suicides.
As for Silver's charge that Cali-
fornia "has attempted to export be-
yond its borders" its own prohibition-
S pp y it to conduct in Michigan,
Ani said: "We would not necessar-
Shave done this on our own if we
had not been asked by the state of
Michinan."
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5 r
higher interest rates and signs of a
slowing economy, American busi-
nesses remai optimistic and expect
to modernize and expand this year at
the highest rate in five years.
Some 5,000 businesses questioned
by the government said they plan to
increase ivestments in new buidir g
and equipment by .8 percent this
year - revised upward rm a pro-
jection three months ago, the Com-
merce Department said yesterday.
The businesses, surveyed in July
and August, said they would spend
$638 billion this year compared to
$587billionlastyear.Theoutlays are
for constructing and modernizing
buildings, installing new computers
and upgrading other equipment and
machinery.
Meanwhile. the LaborDepartment
said the number of inial claims for
state unemployment benefits declined
a modest 3,000 last week, First-time
claims totaled a seasonally adjusted
330,000 in the week ended Sept. 3,
down from a revised 333,000 in the
previous week.
If the 1994 business spending plans
are realized, it would be the bigest
jump in capital investment since an
1l.4percentincreasein 1989.In June,
the government survey projected an
8.3-percent rise in investment spend1-
expansion ., remain intact."
Financial markets took the latest
reports in stride, A t midday, the Dow
Jones Ind ustrial aver age was up more
tuan 16points
ac1l change Friday when
the government announces August
figures that measure inflation at the
wholesale level. Some analysts arc
predicting accelerated inflatione
Yesterday's capital investment
prejection suggests businesses have
not been greatly affected oy the Fed-
eral Reserve's five increases in shots
term interest rates since February,
economists said.
They said the higher rates might
even bolster the confidence of busi-
ness planners who expect the Fed's
campaign against inflation to hold
down long-term interest rates.,
Businesses questioned by the
Commerce Department said they ex-
pected to increase investment for the
thrdr straight year. Companies have
been buying computers and other
high-tech equipment to streamline
their operations.
Prior to last year's 7.3-percent
jump, capital spen~ding rose 3.4 per-
cent in 1 992 after a rare 0.8 percent
decline in 1991.
Manufacturers plan a 7.3-percent
increase in investment spending this
year, compared with a 3.A-percent
nise in 1993. The latest estimate was
revised upward fromn 6.9 percent in
June.
onmanutactunng companies
plan a 9.5-percent jump on top of last
year's 9.3-percent increase, revised
u pward from 8.8 percent in the last
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