Jacques Nasser
Jacques Nasser (born
December 27,
1947 in
Amyoun,
Lebanon; Arabic جاك نصر ) nicknamed "The Knife" because of how quick he is to cut jobs, is a business executive, most known for being the former
CEO of
Ford Motor Company, serving from
1999 until
2001. He is of Lebanese ancestry, but was raised in
Australia and studied at
RMIT University, Melbourne.
Nasser joined Ford of Australia at age 20, and moved up rapidly in the management ranks. By 2000 he had become CEO of
Ford Motor Company in
Dearborn, Michigan, earning an annual salary of US$12 million. Jacques was known for his sharp cost-cutting efforts with Ford's components supplier base, in an attempt to maximize profits and the stock shareholder's dividends. Using the business models of non-automotive companies like
Dell Computer and some of the "
Dot-com" firms as benchmarks, Jacques sought to increase the company stock "price to earnings ratio" (
P/E ratio) from the low single-digit levels of most automotive factory-industrial corporations, to the astronomical levels achieved by the benchmark firms, before the "Dot-com bust".
In an effort to expand the company's portfolio of products, global market share, and revenues, Nasser set out to consolidate the automotive industry, with the multi-billion US$ purchase of
Volvo Cars from the
Volvo group of Sweden,
Range Rover from
BMW and consolidated
Mazda under the Ford portfolio. It was also reported that Nasser made overtures to
Honda and
BMW to propose an acquisition and/or merger of each respective company. Under the banner of making Ford Motor Company "the world's number one provider of automotive products and services", Nasser also purchased several non-core businesses, such as automotive salvage yard chains, repair service shops, and recycling facilities.
Throughout Nasser's tenure, there were serious concerns about his abrupt, sometimes abrasive management style and treatment of subordinates. It has also been said that Nasser's tough business practices and hardnose manners unsettled and alienated Ford's supplier network, dealerships, and employees.
Nasser's firm, almost stubborn public demeanor while testifying before Congress in the
Firestone /
Ford Explorer tire investigation proved to be a public relations problem for the company. At the same time, his automotive business purchases drained billions of US$ off of Ford's cash reserves, and then the US economy began to slump. These events led to a US$5.5 billion loss for the company in 2001, and a subsequent 75% drop in Ford stock values and market capitalization. The reliability and safety ratings of Ford's products also hit a new low under Nasser's direction, the
Ford Taurus and the
Ford Crown Victoria were the only ford models to get a good safety rating. Nasser was eventually replaced by
William Clay Ford, Jr., who was serving as the Chairman of the Board at the time. With Bill becoming Ford's CEO, Ford returned to being a family run business, and after the problems Nasser caused, the Ford Family has admitted that they will most likely not let the company be run by a non family member ever again.
After leaving Ford, Nasser became a senior partner in
One Equity Partners, a subsidiary of
Bank One. After the bankruptcy of
Polaroid Corporation and its eventual acquisition by One Equity, Mr. Nasser served as Polaroid's non-executive chairman and oversaw its restructuring from
2002 to
2005.
Carlos Ghosn who became CEO of
Renault and
Nissan Motors is a Lebanese as well as him, and is his intimate friend.
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List of CEOs of Ford Motor Company
