After taking over at the helm of Ford Motor Company in 2006, there was whispering all around Detroit that "nobody wanted the job" because "Ford was in trouble." Allan Mulally was the third choice of then-President William Clay Ford Jr., after Chrysler's Dieter Zetsche and Renault/Nissan's Carlos Ghosn turned down offers. But in three short years Mulally has proven himself capable. He has successfully steered his company through one of the toughest times any corporate executive could face.
Before coming to Ford, Mulally served as President of Boeing Corporation's commercial-airplane business. He played an important part in guiding Boeing through the aftermath of 9/11 which adversely affected the aerospace industry. His transition from Boeing to Ford came just in time to experience one of the worst economic downturns in Ford's 100+ year history.
But Mulally foresaw the coming storm that would rock the U.S. automotive industry to its very foundation.
Acting on his foresight in 2006, he led the effort to borrow $23.6 billion against credit worthy assets, while Ford still had the ability to do so. This move helped stabilize Ford's financial position along with other strategic plans which were initiated. Ford is the only U.S. automaker from the "Big Three" which did not have to take bailout money from the federal government. Both domestic auto rivals GM and Chrysler subsequently had to file for Chapter 11 bankruptcy protection. Mulally was involved with important restructuring of contracts with the United Auto Workers and implementing changes in product development. He took part in the widely publicized hearings in Washington concerning the future of the U.S. auto industry. He also couldn't understand why Ford dropped its once-successful Taurus line of passenger cars. The Taurus has since been reintroduced and is making a comeback as one of the strong product leaders for Ford in 2010.
While rivals GM and Chrysler had to be bailed out by the American taxpayer, Ford is poised to take over as this nation's largest domestic automaker. With Taurus appearing along side such models as the smokin' retro-looking Mustang, the always-in-demand F series pickups, the new Ford Edge/Lincoln Mark X SUV lines, and new smart-car technology, Ford has alot to offer.
Mullaly has shown he has the ability to lead, and adjust to changes in market conditions. That is what a corporate executive is paid to do. Congratulations, Alan. Hats off to you for a job well done.
Disclosure: Marketdoc holds a long position in Ford Motor Company Common Stock.
No comments:
Post a Comment