Ford Motor may be taking a page from General Motors' restructuring playbook in considering ot sell off part of its Ford Credit financial unit. Both companies have seen the cost of capital for their financial subsidiaries rising as the automakers' credit status falls ever further into junk status.
The resignation Friday of key Ford director Robert E. Rubin was the result of Rubin's position as a board member and chairman of the executive committee at Citigroup, which Rubin feared could raise the possibility of conflict of interest. Since this hasn't been an issue up to now, the move sparked speculation that Ford Credit was in play, particularly in view of Citigroup's recent expansion of its automotive financing portfolio and its role in GM's pending sale of a majority stake in its GMAC credit arm.
Rubin is the third director to leave Ford's board this year. He joined Ford's board in 2000, after serving as Secretary of the Treasury in the Clinton administration. Rubin is a 26-year veteran of Goldman Sachs & Co.
[Source: The Detroit News]
The resignation Friday of key Ford director Robert E. Rubin was the result of Rubin's position as a board member and chairman of the executive committee at Citigroup, which Rubin feared could raise the possibility of conflict of interest. Since this hasn't been an issue up to now, the move sparked speculation that Ford Credit was in play, particularly in view of Citigroup's recent expansion of its automotive financing portfolio and its role in GM's pending sale of a majority stake in its GMAC credit arm.
Rubin is the third director to leave Ford's board this year. He joined Ford's board in 2000, after serving as Secretary of the Treasury in the Clinton administration. Rubin is a 26-year veteran of Goldman Sachs & Co.
[Source: The Detroit News]
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