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Friday, August 25, 2006

Ford "Loses" Robert Rubin From Its Board of Directors

This is an interesting press release that may not tell the whole story. Robert Rubin has resigned from the Board of Directors at Ford (F) this morning. Rubin has reportedly been fairly pressing on the company getting its act together. The reason is stated as "to avoid appearance of any conflicts" because of the Citigroup relationship. Something doesn't sound right there.

In a letter to Bill Ford, Mr. Rubin said: "As the Board undertakes its upcoming review of strategic options, Citigroup's multi-faceted relationship with Ford could raise a question whether my relationship with Ford and Citigroup creates an appearance of conflict. Although no conflict currently exists and while I would have liked to remain involved, I have with great regret concluded that I should resign from the Board at this time."

Chairman and Chief Executive Officer Bill Ford said: "I greatly appreciate the many valuable contributions Bob has made to Ford Motor Company during his six-year tenure. He brought strategic thinking to every situation and has been a wise and generous counselor to me and to the company. However, I understand and respect Bob's prudent decision to resign as we continue to explore future strategic options."

This is as the company is in the midst of its ongoing expolration of alternatives. So what you have to wonder is if Rubin just didn't want to go down with the ship OR Ford is going to go much further than what the street has thought in their restructuring and the possibility that Citigroup will be actively involved just went up.

Jon C. Ogg

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