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Freeman Thomas to help revitalize the company's lineup
May 3, 2005

BY BILL KOENIG
BLOOMBERG

Ford Motor Co. has hired former DaimlerChrysler AG designer Freeman Thomas in an effort to improve design and spur flagging car and truck sales.

Thomas, 47, will join Ford effective June 1 as director of strategic design, spokeswoman Jennifer Flake said in an interview Monday. Thomas, who helped develop the New Beetle and Audi TT roadster at Volkswagen AG in the 1990s, resigned from the California studio of DaimlerChrysler's Chrysler unit on April 21 after almost six years with the company.

Ford and General Motors Corp., the world's largest automaker, are looking to new models to regain lost customers in their home market as foreign automakers gain ground. Rivals such as Chrysler and Nissan Motor Co. have boosted U.S. market share in recent years by stressing design and introducing new models.

"This is a move by Ford to deepen its design bench," said IRN Inc. analyst Erich Merkle in Grand Rapids. "They need help on their car side."

J Mays, 50, Ford group vice president in charge of design, said in an interview April 12 that the Dearborn-based automaker is still going to bring in design talent while cutting costs. He declined to be more specific. Mays and Thomas previously worked together at Volkswagen.

Ford's redesigned Mustang, introduced last year, has led to increased sales. Its new Five Hundred sedan and Freestyle wagon have had less success.

The Five Hundred "was very bland, there was nothing distinctive about that vehicle," Merkle said. Ford executives have defended the Five Hundred's look while saying the company is preparing to adjust its styling.

Ford's U.S. vehicle sales fell 5.2 percent in the first quarter because of declines in some sport-utility vehicle and pickup models.

"Design is the last point of differentiation," Flake said of Thomas's hiring. The new design executive will report to Peter Horbury, executive director of design in North America, Flake said.

Thomas and Mays were credited with creating the designs for the New Beetle and the Audi TT while they worked together at Volkswagen's California studio.

Chrysler's U.S. sales rose 5.6 percent in the first quarter of 2005, helped by sales of its 300 sedan. Its 300 sedan, first introduced in 2004's second quarter, has drawn praises for its styling.

"Design is playing a big role" in boosting Chrysler's sales, Merkle said.

-Matt-