Tower Automotive CEO Steps Down
July 30, 2007
One of the auto industry’s highest-ranking women, Kathleen Ligocki, has stepped down as CEO of struggling auto supplier Tower Automotive. She will become a consultant for Tower’s new owner, Cerberus Capital Management, which is also buying Chrysler.
Ligocki, 50, has been president and CEO of Detroit area-based Tower since August 2003. She joined Tower from Ford, where she had been personally recruited by then CEO Jac Nasser.
Ligocki held various jobs at Ford, including president and CEO of Ford of Mexico and vice president for North American marketing and director of business strategy. With the departure of Nasser, it was clear Ligocki’s days at Ford were numbered.
And she was in big demand. Well-known for her long, flaming red tresses, Ligocki has become a popular industry speaker and interview subject due to her intelligence, candor and wit -- and the fact that she's a top-ranking woman in a male-dominated industry.
She often tells humorous stories of the sexism she encountered –- and plowed through –- coming up through manufacturing ranks of auto supplier firms like United Technologies and General Motors Delphi plants. She also is well traveled, being well on her way to her goal of visiting virtually every country on the planet.
Ligocki will be in no less demand, having brought a company through bankruptcy, since many, particularly auto suppliers, are in the same predicament.
During Ligocki’s Tower tenure, the automaker filed for Chapter 11 bankruptcy protection in February 2005, citing lower production volumes largely from the Big Three automakers, rising steel prices and “a complex and unsustainable debt load.”
Ligocki implemented a sweeping restructuring and reorganization plan that included the closure or sale of 16 manufacturing plants and consolidated production. The company also negotiated settlements with its 10 unions and expanded internationally, which is expected to generate half of the restructured company’s revenue in the future.
On July 11, the bankruptcy court approved Tower’s reorganization plan and its sale to Cerberus, a deal likely to close as soon as this week.
“It has been a long journey through restructuring and turnaround,” in an email sent this morning to friends and colleagues, including AutoObserver, Ligocki wrote. “But, finally, the company will emerge from bankruptcy -- much stronger, much leaner, much healthier. I feel very proud of what our young team of people was able to do in the face of such a challenge. Although it is always difficult to leave people I care about and a company I have given four years of my life, it is time to move on to life's next challenge.”
In her email, Ligocki said the Tower consulting job could be short-term as she decides what she wants to do –- work on a project, take time off or accept another job. She said, not surprisingly, she’s been approached about restructuring work, possible CEO positions and some start-up operations.
But first, having married Detroit-area car dealer Peter Rosenau only a few weeks ago, she intends to take a honeymoon.
Posted by Michelle Krebs at 8:58 AM under Commentary , Companies , News , Personalities | Comments (1) | digg this | Seed Newsvine
After serving the company for over tweanty one years I am happy to see a lot of people will benifit from Kathleen's leadership, howerver I am being cheated out of about $12,500. When the Granite City plant lost all are most of it's leadership I was asked to take on the task of closing the plant. At that time I was offered a severance package that was fair and agread to the terms. After a few months of doing the numerous jobs that I had agreed to I was told I would only receive half of the package that was promised. Being just a small fish in a large pond and holding up my end of the deal, I don't feel that Tower Automotive should cheat a man out of what was promised. I would like to close by wishing all that is left good luck.
Posted by: John Valle | July 31, 2007 at 6:13 AM