A Life Dedicated to Ford
Donald Petersen, the second non-Ford CEO in the company's history, passed away on April 24th, 2023, at his home in Bloomfield Hills, Michigan. He was 97 years old.
Petersen's tenure at Ford, from 1985 to 1990, marked a period of significant prosperity for the Dearborn-based automaker. During his leadership, Ford achieved record profits, largely due to the introduction of fuel-efficient models like the iconic Taurus.
The Taurus, launched in 1985, was a direct response to the growing competition from Japanese automakers. Its aerodynamic design, dubbed "jelly-bean styling," was a testament to Petersen's commitment to quality and innovation. He challenged Ford's designers to create a car they would be proud to own, a standard that continues to guide the company today.
Petersen's leadership was also characterized by his focus on quality. He sought the guidance of W. Edwards Deming, a renowned statistician and quality expert, to improve the reliability of Ford's vehicles and compete with the high standards set by Toyota and Honda. This commitment led to the adoption of "Quality is Job One" as Ford's official slogan.
Beyond his focus on product quality, Petersen also aimed to transform Ford's corporate culture. He recognized the need to move away from the company's rigid hierarchy and create a more collaborative environment. While this proved challenging, Petersen's efforts laid the groundwork for future cultural changes within the organization.
Despite his dedication to Ford, Petersen's relationship with the Ford family was complex. As a non-family member leading the company, he faced tensions with some members, particularly regarding the limitations placed on the board roles of Edsel Ford II and William Clay Ford Jr. This ultimately led to Petersen's departure from Ford in 1989 with a $10 million severance package.
Despite the circumstances surrounding his exit, Petersen remained a respected figure within the automotive industry. In 2006, he played a key role in recommending Alan Mulally as Ford's CEO, a decision that proved crucial in steering the company through the 2008-2009 recession.
Donald Petersen's legacy extends far beyond his time at Ford. He was a visionary leader who championed quality, innovation, and collaboration. His contributions to the automotive industry and his dedication to Ford will be remembered for years to come.