September5
Bill Ford has resigned as CEO of Ford Motor Company. He has been replaced by Alan Mulally as president and chief executive officer. Mulally led the several-year turnaround process of Boeing, which was in a financial crisis prior to his involvement. Bill Ford will continue his duties as executive chairman of the company. Bill Ford, who said he would remain “extremely active” in the business, praised Mulally as “an outstanding leader and a man of great character.” Developing…
“One of the three strategic priorities that I’ve focused on this year is company leadership. While I knew that we were fortunate to have outstanding leaders driving our operations around the world, I also determined that our turnaround effort required the additional skills of an executive who has led a major manufacturing enterprise through such challenges before,” Bill Ford wrote in an email to Ford employees today.
“That’s why I’m very pleased to announce that Alan Mulally, who turned around the Commercial Airplanes division of The Boeing Company, will become our president and CEO, effective immediately. Alan has deep experience in customer satisfaction, manufacturing, supplier relations and labor relations, all of which have applications to the challenges of Ford. He also has the personality and team-building skills that will help guide our Company in the right direction.”
“Clearly, the challenges Boeing faced in recent years have many parallels to our own,” Bill Ford said.
Mulally, 61, has spent 37 years at The Boeing Company, most recently as executive vice president. In addition, he has also been president and chief executive officer of Boeing Commercial Airplanes since 2001. In that position he was responsible for all of the company’s commercial airplane programs and related services, which in 2005 generated record orders for new business and sales of more than $22.6 billion. Mulally was named president of Commercial Airplanes in September 1998. The responsibility of chief executive officer for the business unit was added in March 2001.
“I think the opportunity to work with Bill Ford and Ford Motor Company is the only thing that could have attracted me to a job other than Boeing, where I have so many great friends and memories,” Mulally said. “I’m looking forward to working closely with Bill in the ongoing turnaround of this great Company. I’m also eager to begin engagement with the leadership team. I believe strongly in teamwork and I fully expect that our efforts will be a productive collaboration.”
Mulally noted that many of the challenges he encountered in commercial airplane manufacturing are analogous to the issues at Ford.
“Just as I thought it was appropriate to apply lessons learned from Ford to Boeing, I believe the reverse is true as well,” Mulally said. “I also recognize that Ford has a strong foundation upon which we can build. The Company’s long tradition of innovation, developing new markets, and creating iconic vehicles that represent customer values is a great advantage that we can leverage for our future.”
Bill Ford said he expected Mulally would assist Mark Fields and the Way Forward team as they accelerate their business plan.
“After dealing with the troubles at Boeing in the post-9/11 world, Alan knows what it’s like to have your back to the wall – and fight your way out with a well-conceived plan and great execution,” Bill Ford said in his note to employees. “He also knows how to deal with long product cycles, changing fuel prices and difficult decisions in a turnaround.”
Prior to his current position, Mulally served as president of Boeing Information, Space & Defense Systems and senior vice president of The Boeing Company. Appointed to that role in February 1997, he was responsible for Boeing’s defense, space and government business.
Beginning in 1994, he was senior vice president of Airplane Development for Boeing Commercial Airplanes Group, responsible for all airplane development activities, flight test operations, certification and government technical liaison.
Mulally serves as co-chair of the Washington Competitiveness Council, and sits on the advisory boards of NASA, the University of Washington, the University of Kansas, Massachusetts Institute of Technology and the U.S. Air Force Scientific Advisory Board. He is a member of the United States National Academy of Engineering and a fellow of England’s Royal Academy of Engineering.
Mulally holds bachelor’s and master’s of science degrees in aeronautical and astronautical engineering from the University of Kansas, and earned a master’s in management from the Massachusetts Institute of Technology as a 1982 Alfred P. Sloan fellow.
A member of the board since 1988, Bill Ford, 49, was elected chairman in September 1998, and took office on Jan. 1, 1999. He also serves as chairman of the board’s Environmental and Public Policy Committee and as a member of the Finance Committee. He was named Chief Executive Officer on Oct. 30, 2001.
Bill Ford, who led the Company to three straight years of profitability through 2005, told employees in his email that he looked forward to an excellent working partnership with Mulally on global strategic issues.
“Let me assure you: I’m not going anywhere,” Bill Ford wrote to Ford workers. “As executive chairman, I intend to remain extremely active in the direction of this Company. I’ll be here every day and I will not rest until a prosperous future for this Company is secured.”
When things suck, heads roll. No real news here.
So in summary, what exactly is the sole reason he resigned? Does he feel Mulally is better for the company than himself?
I hope this change helps the automaker. But the auto industry is more dynamic than the airliner business, where planes get replaced every 15-20 years and the manufacturer has the luxury of multi year developmental cycles.
The auto industry needs product overhauls every 2.5-3 years to remain competitive and attract buyers.
Bill, don’t worry. You will get your paycheck and perks no matter what your title is.
Mulally has some damn impressive turnaround experience from Boeing, which is exactly what Ford needs right now.
Bill Ford is just having one of his jobs done by an outsider, to bring in new thinking.
Essentially, the two people become co-leaders.
Daniel,
yes.
Since 2001 when Bil was forced to take over as CEO to save the company from Nasser, he said, that he will let go of the CEO hat when they find someone more talented. They tried to recruit Ghosn several times, for example.
Bill Ford is a born Chirman for the company - he never was a true CEO material - he does not have it in him - and it is great he recognized, that there is a better person to run his company than himself.
Igor
Oh alright alright, that’s what I thought. That takes guts…
Lets hope Ford gets back on track with someone better at the reigns now.
My guess is Mulally has been put in place to carry Ford through a coming period of corporate restructuring. That will require someone with the credibility and experience to lead it and Bill Ford has been too passive. Hopefully we will see less of the headless chicken stuff now and a stronger, more focused corporation at the end of the process.
Wow. just wow. Didn’t see this coming so soon. Bold move indeed.
It only makes sense. But I agree it’s a shocker.
GOOD NEWS
nothing personal against the guy just seems like he wasnt getting much done
We all knew it was coming, but somehow, it’s still shocking…?
Bill Ford’s grandfather started the company? Just curious.
so billy is out, then they sell aston, then they take the company private, then the edge starts selling well, then they announced a rwd sedan….
… this may just work out okay.
Wow. Was NOT expecting to hear anything like this. Ford may actually have balls. I agree with Xapeston that a nice plan might still happen.
ding dong….. finally… let’s see if Ford can actually get on the right track. i cant help but think all the pressure from the press and internet sites like this is actually making them do bold moves. after all, they made fordboldmoves.com especially for these sites. LETS SEE THAT RWD SEDAN. THE 427 CONCEPT PLZ.
First the Crocidile hunter now this? It’s a roller coaster week i tell ya!
Maybe this guy will have the cajones to kill off or sell off some of the brands that do not fit with Ford’s best business practices. I realize the problem is the dealers, but Bill Ford’s past relatives put them all in place years ago, it may have been hard for him to pull the plug now as a family member.
Ford has such great potential to make unique fun vehicles. They have proven that they can support marques like Volvo, Aston Martin and Land Rover, which are flourishing under Ford’s roof. Get the core business in line (Ford, Mercury, Lincoln), make some tough choices, and they may have a good chance of survival. Oh, and just sell Jaguar as soon as possible.
It’s been a long time coming. I think Ford focused on Ghosn too much, and it would have been good to bring in someone more experienced in these matters sooner. I also think this will be a boon for the labor force who has very negative associations with their current boss at the top. Just a good move. A bold move.
woohoo! my father works for Ford and the people there have long known that Bill wasn’t capable of really doing this job. his new role is more appropriate. bravo.
wow…for the 1st time since it began the ad campaing Ford actaully pulled a “Bold Move” lets hope it works out for them
At least Mark Fields Hairpiece didn’t get the job
Did they outsource his job or are they pulling the wool over our eyes by bringing in a slightly restyled Bill Ford that is nowhere near as competent as the European version that should have replaced him?
That goes to show you how nice Bill Ford is. He wants to save Ford company and realized that he’s not the man for the job, so he resigned.
Are you listening, Rick Wagoneer??!!! Rick is an igornant and doesnt realize that he’s making GM go down. But what do i care? I hate GM. Always have!!
Goooo FORD!!!
Excellent move. Don’t worry Bill, you’re a good guy, just not for this (rather complex) task. With people like Mulally on board, Ford’s future may not be so bleak after all. This is great news!
Wow! (In Christopher Walken type voice)
He should leave company forever, if you have Ford name that doesnt mean you have to be Ford boss.
yea i hope it helps them……i dont wanna buy a jap tundra or tacoma…..
I like men and women!
omg this is the first time a man of ford has steped out of the positon of ceo ford is stupid and i dont think evan this new guy can help they need to cut alot of people and fast!!
Nice, I hope soon Fords start to fly…
from dealers lots
MUSThave
MUSTang
-=Bimmer=-
Miles, learn how to spell!
ba ba black sheep, I like chocolate milk
Its a shame that Bill didn’t seem to have gasoline in his blood. I think that he would rather hike in the woods and play with misquitos than run a car company. He was too much of an environmentalist to be in that business.
I’m not sure about having some guy from Boeing run a company like Ford. Boeing aas a company stinks as well. They aren’t exactly at the leading edge of innovation. How many years have they been building the 767? The modern aircraft industry is a shadow of its former self, building nothing but the same old crap for almost 35 years. Sure, aircraft ****pits have more elctronics on them, but they haven’t made the same strides in fuel efficiency and speed that cars have in the same period.
Mulally: “So you’re staying on as Executive Chairman and I’ll be CEO, Bill?
Ford: “That’s right. Dont worry about the demarcation of decision-making, because I’ll be doing anything I want and you’ll do what’s left”.
Fields is probably toast now.
Wow, din’t see that one coming… probably for the better.
First thing Mulally should do:
*** Bring the European Focus here as soon as possible! ***
Ford wonders why it’s floundering, but in one market it’s patently obvious: they leave superior models in Europe and then wonder why the decrepit American versions aren’t selling well anymore. The Mondeo is probably another car Ford should have here, even if the Fusion and Five Hundred are solid (if unspectacular) successors to the Taurus.
The problem with Euro Focus is its cost. I don’t think anyone in North America is prepared to pay such a high price for a relatively small car (Other then MINI). And Mondeo had in it’s time North American twins: Ford Contour and Mercury Mystique. Both proved unsuccessful. And let’s not forget other examples of European Fords: Ford Scorpio (sold here as Merkur Scorpio) and Ford Sierra (Merkur XR4TI).
He is still a rich muthafukka.
maybe this guy will think of a new slogan. bold moves is such crap for ford. honostly, how is FORD bold!?!?!?!?
Ford is sucking, so they get a new CEO, to be expected I guess
I agree with Jonathan Fingas. Bring over the Euro-Focus! The current model is too long in the tooth. Grafting a Fusion-style nose on a 7-year-old design isn’t gonna do it. Gotta think p-r-o-d-u-c-t.
@ Henry - Boeing is actually doing very well now in passenger planes where they had lagged for a while.
The best news is Ford have got someone with a metalbashing background inside of some accountant/lawyer type
*instead!
THIS IS JUST THE BEGINNING, THE SHIP IS TURNING… GOOD FOR WILLIAM CLAY NOT BEING SO EGOTISTICAL AND PASSING THE REIGNS OVER TO SOMEONE WHO CAN KICK THIS WHOLE TURN-AROUND UP A NOTCH OR SEVEN…THE SIGN OF A TRUE LEADER. WE ARE GOING TO SEE SOME GREAT THINGS VERY SOON. I THINK THERE WILL BE A NUMBER OF BOLD MOVES IN THE COMING WEEKS AND MONTHS. IT WILL BE EXCITING TO SEE!
ford still stinks..
No one can solve Ford’s sinking sales if their design team for cars continue to be boring. They need to shift up a notch in producing bolder and more distinctive designs that people will actually want just like what GM is doing now.
The point regarding the Euro focus is well taken, people in the US expect a small car to be “cheap” i.e. inexpensive. In Euro the Focus is a “mid-sized” car and seen as a step up from the supermini class. Europeans expect to pay a premium for the features and size the Focus represents there. Here it is seen as “entry-level”, what you buy your daughter to take to college. It would not be profitible for Ford here. Still with careful contenting the car would be well recieved here.
And all of you who called for Billy to step down, are you happy now or are you still pissed that he is chairman?
bill is a homo!!
haha i like everyone here thinking that this is going to somehow stage a huge turnaround at ford. they build ****ty cars. a new CEO isnt changing that.
Let’s not comment too much and see if Ford is profitable a year from now.
ford is a homo?? if u think im joking u are to cnn 5 years ago broadcasted that bill ford got cought having sex with a male!! it was quickly removed from the media and never spoken of again?? but yea hes a homo
interesting article about Bill Ford’s time as ceo here:
http://www.slate.com/id/2149079/