Feeling Heat From Ford, GM Reshuffles Managers
March 2nd, 2010 | Published in News
MARCH 2, 2010, 8:55 P.M. ET
By SHARON TERLEP And NEAL E. BOUDETTE
Ford Motor Co. surpassed General Motors Co. in sales last month for the first time in at least 50 years, presenting a new headache for the government-owned car maker as it struggles to return to profitability.
Hours after the sales results were disclosed Tuesday, GM announced an overhaul of its top managers—the second executive shuffle in three months. The news underscored the impatience of GM Chief Executive Edward E. Whitacre Jr. and the heat the company is feeling from a resurgent Ford.
Ford said it sold 142,006 cars and light trucks in the U.S. in February, 43% more than a year ago—and 471 more than GM. While Ford’s results were boosted by sales to rental-car companies and other fleets, it was the first time since at least 1960 that Ford outsold its larger rival except for two months in 1998 when GM was hurt by strikes, according to Edmunds.com, an automotive data provider. GM’s February sales rose 11.5%, to 141,535 vehicles.
GM executives have been feeling pressure to keep pace with Ford’s sales and market-share gains, people familiar with the matter said. In recent weeks, Mr. Whitacre and his North American president, Mark Reuss, began considering changes to boost the company’s performance.