Spring 2003
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Spring 2003 |
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Greg Smith is a back-to-basics kind of guy, but you won’t find him living off the land in some secluded forest. Smith, a 1973 mechanical engineering alumnus, practices that philosophy as chairman, president and chief executive office of the Ford Motor Credit Co and a group vice president of Ford Motor Co. He was named to that position last September after having served as president and chief operating officer of Ford Credit. As the chief officer at Ford Motor Credit, Smith is responsible for all operations of Ford Credit worldwide, including regional sales offices, dealer support operations, product development, marketing and insurance. He also is responsible for Ford Credit’s North American Diversified Operations, which includes commercial lending services as well as the PRIMUS, AMI, Triad and Volvo financing subsidiaries. Ford Credit is the world’s largest automotive finance company. If it were a bank, it would be the ninth largest in the world, with more than $200 billion in assets. Based in Dearborn, Mich., next door to Ford Motor Company’s International headquarters, Ford Credit provides vehicle financing to more than 11 million customers and more than 12,500 automotive dealers in 36 countries around the world. More than 20,000 people are employed with Ford Credit. As the world economy goes through some uncertain times "we are focusing on the basics of our business and trying to excel at the fundamentals," Smith explained. "We’re focusing on our core business and we’re not expanding into new businesses. We’re doing automotive lending extremely well and we're committed to doing it even better ." Smith cited three core elements the company uses to find success in the financial marketplace: loan origination, including the process of getting them on the books; servicing customers; and funding the company's operations. "We do a lot of benchmarking and incorporate a lot of metrics that measure efficiency, time and customer satisfaction," Smith explained. The fundamental-focused philosophy has paid off. Ford Motor Credit reported earnings of $1.23 billion in 2002, up $395 million from earnings of $839 million a year earlier. The company also received two of the four top awards in the most recent J.D. Power Customer Finance Satisfaction Study. And Smith’s management strengths have been recognized by national and local business media and by automotive trade journals.. "Auto lending is extremely competitive," Smith noted. "People expect us to compete with GMAC and DaimlerChrysler Services, but the reality is that we compete with every regional and national bank and with every local bank and credit union." Smith conveys his back-to-basics philosophy through a team approach to management. "At every level, this is a team sport. The interaction with people at all levels is a significant element of business success. "We strive to establish the right culture, where people feel accountable but open to suggestions and ideas. It makes for a dynamic and responsive work environment, where people display a high degree of integrity and competency in what they do." When asked to cite the rewards he receives through his position, Smith put working with his Ford colleagues and with auto dealers at the top of the list. He noted also that he enjoys the interface with Wall Street on balance sheets and funding issues and, "the nuts and bolts of the finance business in general." Management was a goal of Smith’s when he left Rose-Hulman three decades ago, but he had no inkling he would end up in financial services. His first job out of college was an engineering position with Ford Motor's Truck Operations. He spent 12 years in truck product development before moving to a position as truck and powertrain marketing plans manager. In 1987, Smith was appointed manager, car marketing plans for Ford Division; in 1989, he became regional marketing manager for the company’s central region. Later that year, he moved to the Lincoln-Mercury Division to become the Dallas district operations manager. As he moved through these positions, Smith gained an appreciation of all aspects of the automotive business, from product cycle planning and marketing, to working with dealers. In 1990, Smith was named director of strategy and advanced planning for car product development, a position he held until 1993 when he was appointed executive director, strategic planning and external affairs, for the Ford Financial Services Group. He was named vice president, new business development, for Ford Credit’s Diversified Operations in 1994. In 1995, he was elected to executive vice president, international financing operations. "In a large company like Ford, one of the advantages you have is the opportunity to have a diverse set of work experiences," Smith said of his career path. Although he has not tinkered with the specs of a truck recently, Smith has not forsaken his engineering heritage. "An engineering background helps you do most anything because it’s an analytical process," Smith said. "I use it (engineering background) now as more of a thought process than I do a technical discipline." Smith supplemented his engineering degree with a master of business administration from Eastern Michigan University. The workday for Smith normally starts at about 7 a.m. and runs until about 6 p.m., with dinner meetings and travel a regular part of the mix. Smith does not limit his time only to work – he is a board member for Junior Achievement of Southeast Michigan, and he is on the Deans’ Advisory Council at the Indiana University Kelley School of Business. He also sits on the board of Detroit Investment Fund, which provides capital and advice for developing companies in the Detroit area, and he is a trustee to the Eastern Michigan University Foundation Board. On the family side of life, Smith enjoys spending time with his wife and three sons. His hobbies include skin diving, snow skiing and travel. He also enjoys spending time with close Rose-Hulman friends living in the Detroit area.
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