Reproduced from the Wall Street Journal

Ford Nabs a Star From Toyota

Former Lexus Chief
Is Hired to Revamp
Strategy, End Slide

By NORIHIKO SHIROUZU and JEFFREY MCCRACKEN
October 12, 2007; Page B5

Ford Motor Co. hired Jim Farley, a rising star from Toyota Motor Corp., to a new post as head of world-wide marketing and communications, a move that bolsters its management team and signals a new approach to halting a U.S. sales slide.

Mr. Farley, 45 years old and the former head of Toyota's Lexus division and U.S. sales arm, is the third high-ranking U.S. executive to leave Toyota in recent months. Senior Toyota executives had said he was being groomed for a high-profile position globally. His departure is "a challenge to overcome, but we have a deep bench of talent," spokesman Irv Miller said. "We probably have a dozen people being groomed for high-profile positions."

Ford Chief Executive Alan Mulally, who has been under pressure from investors and the company's board to improve performance, said in an interview that Mr. Farley will report directly to him and will have a mandate "to take marketing to a whole new level of performance at Ford." Mr. Farley will work with Ford's head of global product development, Derrick Kuzak, "so we really listen to the customer and understand the customer."

Mr. Mulally said Ford needs to increase awareness of new models and of its effort to change its focus from sport utility vehicles and trucks to a full model line. He has questioned some of Ford's marketing, and he acknowledged it is harder than he expected to get consumers to consider Ford vehicles. This year, Ford fell to No. 3 in U.S. sales volume, behind General Motors Corp. and Toyota.

Ford spends more than $2 billion a year on advertising but has struggled to generate buzz for new models. Sales of the redesigned Taurus sedan, formerly the Ford Five Hundred, have started slowly. Through the first nine months of the year, sales of Taurus-Five Hundred are down 22%. Overall, Ford sales are down 13.7%.

Some of Ford's recent marketing efforts have fizzled, such as its "Bold Moves" campaign, launched last year. Dealers complained the ads didn't specifically promote new products. It was sidelined in favor of "Ford Challenge" ads that press consumers to compare Ford vehicles with those of its rivals.

Mr. Farley's position includes the responsibilities of marketing executives who have left Ford over the past 12 months. He is expected to start in mid-November.

At Toyota, Mr. Farley was credited with a successful launch of Scion, a brand designed to appeal to young buyers. Toyota said he will be succeeded by Mark Templin, 46, a vice president in charge of Scion.