Former Treasury Secretary Robert Rubin, a director at Citigroup Inc., resigned from Ford Motor Co.'s board over concerns that a conflict of interest could arise as the automaker restructures its business.
In a letter to Ford chairman and chief executive Bill Ford, portions of which were released to the news media Friday, Mr. Rubin wrote that Citi's "multifaceted relationship with Ford could raise a question whether my relationship with Ford and Citigroup creates an appearance of conflict."
Mr. Rubin, the third director to leave Ford this year, wrote that no conflict currently exists, and that he regretted leaving the board. He had been a Ford director since 2000.
Mr. Ford is leading an internal review of the Detroit company's assets. The automaker may sell certain assets, including its European luxury brands or a stake in Ford Motor Credit.
JPMorgan Chase & Co.'s private equity arm, One Equity Partners, is in talks with Ford to acquire some of the auto maker's luxury brands, a person familiar with the situation said Friday.
Oscar Suris, a spokesman for Ford, said in an interview that Citi could play a role in any such sale, and that Mr. Rubin wanted to take any potential conflict "off the table."
Some have speculated that tension is growing between the Ford family, which controls 40% of Ford voting interest, and the board. In April former executives Jim Padilla and Carl E. Reichardt resigned from the board.
Mr. Rubin's departure has left Ford with 11 board members, including Bill Ford. His father, William Clay Ford Sr., is director emeritus. (Sir John Bond, who retired as the chairman of HSBC Holdings PLC on May 26, remains a director of Ford and is the only person with a banking background left on the board. He also joined the board in 2000.)
Another troubled automaker, General Motors Corp., has lost a critical board member from the financial service world as a result of potential conflicts of interest. Stanley O'Neal, the chief executive officer of Merrill Lynch & Co. Inc., left GM's board in February, citing demands on his time and potential conflicts related to the automaker's restructuring.
