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Ford's original idea in recruiting Knudsen, now 56, was to let him act as president for some years while lacocca, 44, got some more seasoning. After Knudsen arrived at Ford, many executives concluded, to their surprise, that he was not really as shrewd or nimble as lacocca. In his overeagerness to succeed, Knudsen committed a tactical error. He tried to make policy in parts of the company that lacocca thought were his responsibility. Not long ago, lacocca went to Henry Ford, who considers lacocca his brightest protege, and told him that he could no longer endure Knudsen's meddling. Apparently Knudsen's methods had not overly pleased Ford, either. The grandson of the founder of the Ford Motor Co. insists on maintaining absolute control of the business, knows just about everything important that goes on in the company. As he said last week: "I am the chief executive officer of this company."
The outcome of the Knudsen affair made lacocca stronger than ever. Ford did not name a new company president. Instead, the directors elected lacocca and two other "high Ford executives, Robert Stevenson and Robert J. Hampson, presidents of three major operating groups, lacocca, as head of all auto product development, manufacturing and sales in the U.S. and Canada, is clearly primus inter pares. He could not quite conceal his delight at Knudsen's departure. When asked if he was sorry to see Knudsen go, lacocca replied: "I've never said 'No comment' to the press in my life, but I'll say it to that one."