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Mazda boss to run Ford's struggling Europe unit

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Bottom line is that Lewis Booth is heading to Europe to run Ford Europe and Hisakazu Imaki is taking over the helm at Mazda. He is the first Japanese native and the first "insider" since 1996 to run Mazda.

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It's on many news websites. Here is one with more Mazda related information:


Mazda's Booth to Head Ford Europe
Wed Aug 27, 1:25 AM ET
By Chang-Ran Kim

TOKYO (Reuters) - Japan's Mazda Motor Corp said on Wednesday President Lewis Booth has stepped down to fill Ford Europe's vacated COO position, leaving the car maker in the hands of a Japanese veteran for the first time in seven years.

The announcement came as a surprise since Booth had been expected to stay for at least two years after taking charge of Japan's fifth-largest auto maker in June 2002.

"I recognize this is unexpected," he told a news conference. "Unfortunately 10 days ago the president of Ford Europe unexpectedly resigned. The future of Ford Europe is very important not just for Ford but for Mazda as well."

Ford Motor Co owns one-third of Mazda.

Two weeks ago, Martin Leach stepped down as president and chief operating officer of Cologne-based Ford Europe a month after the division posted a shock second-quarter loss blaming a drop in car demand and fierce pricing competition.

Mazda will be headed by Hisakazu Imaki, a 38-year veteran of the company. He becomes the firm's sixth president in seven years and the first Japanese president since Ford sent Henry Wallace to run it in June 1996.

"I am absolutely convinced that Imaki-san will be an outstanding president for Mazda. It is because of that conviction that I have taken up Ford's offer," Booth said.

The 54-year-old Liverpudlian had told Mazda colleagues he wanted to nominate a Japanese executive to replace him when he left.

"I have been involved in the planning and execution of the Millenium (turnaround) Plan, and I will carry on in my new role to make sure we stay on the right track," Imaki, 60, said.

UBS Securities analyst Takaki Nakanishi said the appointment of Imaki, a Japanese national and a Mazda veteran, would likely mean the post would be occupied longer, allowing Mazda to be run better with tighter teamwork and a consistent business strategy.

Mazda, in the midst of a five-year turnaround plan, is counting on new models like the award-winning Mazda6/Atenza and the upcoming Mazda3/Axela to boost global sales and put the company on a firm recovery track.

Despite tough competition in the global car industry, Mazda has fared well with a 77 percent jump in operating profit last year thanks to hefty cost cuts and healthy European sales. For the current year to March 2004, it expects to rake in its highest income in a decade.

Among the other changes at the top, John Parker, formerly president of Ford's operations in the Association of Southeast Asian Nations (ASEAN), was appointed executive vice president, effective immediately.

The announcement came just before the close of morning trade on the Tokyo Stock Exchange. In mid-afternoon trade, Mazda's shares were flat at 308 yen, roughly in line with the key Nikkei average

"I think with the introductions of new products, some recently and some still to go, there's still some upside for the stock," said Marc Desmidt, director of the equities fund management team at Merrill Lynch Investment.