Thursday, July 02, 2009

YRC announces shake-up of top management

As losses mount, trucker reshuffles management ranks.

Struggling trucker YRC Worldwide Inc. announced a shake-up of its upper management, resulting in an expanded role for the president and chief operating officer of its holding company, the hiring of an outsider to head the company's sales, and the departure of its top regional executive.

Mike Smid, president and COO of YRC Inc., has been put in charge of operations of all YRC Worldwide regional and national networks. Smid will also continue in his current role, the company said.

John Garcia, who had been president of Sprint's largest wireless business unit and chief marketing officer for the entire corporation, was tapped to head YRC's sales function. Garcia will manage and coordinate sales for YRC's trucking and logistics units, and report to William D. Zollars, YRC's chairman and chief executive officer.

Gone is Keith Lovetro, president of YRC Regional Transportation. Also departing were Michael Rapken, executive vice president and chief information officer; Jim Ritchie, president of YRC Logistics; and Christina Wise, vice president and treasurer.

John Carr, who had been COO of YRC Logistics, has been promoted to president of the unit. Greg Reid, executive vice president and chief marketing officer, will lead a consolidated marketing effort, including brand and business development initiatives, the company said.

YRC has lost $2 billion in the past 27 months, and without flexibility from its lenders, would be in danger of violating its loan covenants. Zollars said in mid- May that he would consider applying to the federal government for $1 billion in funds from the Troubled Asset Relief Program to help defray its $2 billion in annual costs for paying into the Teamsters Union's multi-employer pension plan. YRC won a reprieve from its immediate pension obligations June 18 when the Teamsters' Central States pension fund, the largest fund YRC contributes to, allowed the company to defer its $83 million second-quarter pension payment in return for pledging some of its real estate as collateral.

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