Donald Petersen, the former CEO of Ford Motor Co., has passed away at the age of 97. Petersen led Ford from 1985 to 1990, during which time the company’s profits surged, surpassing General Motors in 1986 and 1987. He is credited with introducing popular cars such as the Taurus and Sable sedans, which featured rounded, aerodynamic styling. However, despite his successes, Petersen was said to have clashed with the founding Ford family and was criticized for not practicing the collaborative management style he advocated for.
Born in Minnesota in 1926, Petersen joined Ford in 1949 and rose through the ranks, eventually becoming president in 1980. He worked alongside CEO Philip Caldwell during a period when Ford was struggling to survive in a severe recession. During Caldwell’s tenure, the Taurus was developed and unveiled in early 1985. The success of the Taurus is often credited to Petersen, who believed that the car symbolized Ford’s reputation for quality and acceptance. Despite this success, Petersen faced challenges from within the company, which ultimately led to his departure in 1989.
In late 1988, members of the Ford family publicly expressed their dissatisfaction with their roles on the company’s board, leading to tensions with Petersen. By May 1989, Edsel Ford II and William Clay Ford Jr. had joined key committees in the company. Petersen’s disagreements with the board, including issues related to succession and acquisitions, ultimately led to his departure. While Petersen maintained that he left voluntarily, there were reports of internal conflicts that contributed to his exit as CEO. Harold “Red” Poling succeeded Petersen as CEO, delaying his retirement to take on the role.
Following his departure from Ford, Petersen remained involved in the automotive industry and continued to share his insights with other leaders, including Alan Mulally, who was hired by Ford in 2006 to revive the company. Mulally, a fan of the original Taurus, engaged in discussions with Petersen to learn from his experiences at Ford. Despite the challenges Petersen faced during his time as CEO, his impact on the company’s success and leadership philosophies continued to resonate with future executives at Ford.
Today, the legacy of Donald Petersen lives on through his contributions to the automotive industry and his influence on future leaders at Ford. While the Taurus, Petersen’s greatest model triumph, is no longer in production, Ford has shifted its focus to trucks, SUVs, and electric vehicles. Petersen’s tenure at Ford marked a period of significant growth and success for the company, cementing his legacy as a forward-thinking leader who left a lasting impact on the automotive world.
