Green Car Congress
About GCC Contact  RSS Subscribe Twitter headlines

« CalCars to Become For-Profit PHEV Company | Main | US Sales of Hybrids Hit New High in August: 26,189 Units, 1.8% of LDV Market »

Print this post

Ford Brings in Boeing Exec as New CEO; Bill Ford Remains as Executive Chairman

5 September 2006

Ford Motor Company announced today that it has elected Alan Mulally as president and chief executive officer, replacing Bill Ford, who will continue on as executive chairman of the company. Mulally led the turnaround of the commercial airplane division of Boeing. He has also been elected to Ford’s Board of Directors.

In a memo to employees published over the weekend by the Detroit News, Bill Ford said that he was “determined to continue to develop leaders inside the company and to attract leaders from outside when we need additional skills to turnaround our business.” In the same memo, Ford noted that the company needed to switch to a new business model.

Mulally 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.

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. 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.

—Alan Mulally

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. He also knows how to deal with long product cycles, changing fuel prices and difficult decisions in a turnaround.

—Bill Ford

September 5, 2006 in Market Background, Vehicle Manufacturers | Permalink | Comments (15) | TrackBack (0)

Comments

Are you kidding me? You have to hire an expensive outsider to tell you that you have no fuel efficient vehicles to sell? Well I just did, now you owe me &1,000,000!

Posted by: Richard | September 05, 2006 at 02:08 PM

It's good to see Ford reach outside the auto industry. Tunnel vision in a large company with a culture ingrained over a century can be hard to overcome. Boeing's push towards efficiency as shown in the 787 while Mulally was at the helm is promising. Hopefully a similar mindset can be transplanted to Ford. Too bad real changes in the product lineup probably won't be seen until the next design cycle (2-3 years?).

Posted by: PriusNV | September 05, 2006 at 02:25 PM

It seems that an air pumped regenerative breaking design should be achievable even by Ford.

They should lay off their lobbyists, since Ford managements were confused by their own smokes & mirrors.

Posted by: Energex42 | September 05, 2006 at 02:53 PM

Hate to say it, but I doubt the efficiency of the 787 was motivated by environmental concerns, but rather for the economic gains airlines would see because of reduced fuel use. I doubt many airlines choose planes based on their "greenness" (when is the last time you saw an airline advertise their environmental leanings).

Then again, maybe this guy will see that to save ford, there needs to be a push for efficiency. Who knows, maybe this guy can do some good.

Posted by: Sean | September 05, 2006 at 08:37 PM

CEOs of large corporations, while typically vastly overpaid, *can* make a difference. Witness Apple Computer after the return of Steve Jobs. It remains to be seen if this guy is in that league.

Ford is on the ropes. It has nothing to lose by embracing a completely new strategy, so who knows what good things might happen if its leadership has the vision to build the cars and trucks demanded by the new realities of the twenty-first century.

Posted by: Nick | September 05, 2006 at 09:17 PM

Boeing bet their future that the airlines would do more regional and less 500 person long haul like Airbus. It looks like Boeing's bet is going to pay off well. In an industry where they bet the company on the 747 and won, maybe these are the kinds of people Ford needs now.

Posted by: SJC | September 05, 2006 at 09:17 PM

Aircraft manufacturers pay about 5000$ for 3-seat assembly for their passenger aircraft. I hope Mr. Mulally will not introduce this part of corporate culture into Ford product lines.

Posted by: Andrey | September 05, 2006 at 10:11 PM

Boeing is working at removing halon from their fire-suppression systems and replacing it with dry chemicals and water.  This is ozone-friendly and quite "green".

Posted by: EP @ work | September 06, 2006 at 06:22 AM

The general mood of these posts seem to want to indicate that this guy, and Ford, needs to fail. Yet the mood also indicates that Mulally has helped Boeing succeed. For that, lets give this guy some credit to see what he can do. Maybe a bright future for Ford.

Posted by: Mark A | September 06, 2006 at 06:52 AM

As much as I love to hate the US auto companies, I would like to change my stance over the next few years. Let's hope Ford, with the new leadership, can move forward and be very successful.

Posted by: JM | September 06, 2006 at 08:26 AM

Maybe he is going to start use one of those big GE turbine engines in the mustang. We can only hope. :-)

Posted by: Barry R. Guthrie | September 06, 2006 at 09:03 AM

Energex42,
"It seems that an air pumped regenerative breaking design should be achievable even by Ford."
You are underestimating them. They have hydraulic hybrids, and clean more efficient diesels in the pipe. It will take someone like Mulally to push it through to the finished product, and quickly.

Posted by: allen Z | September 06, 2006 at 09:59 AM

Ford spent too much time hanging on to truck-based designs, hoping against hope that prices at the pump would go down again. The new CEO's success will depend largely on what Ford has in the pipeline in terms of fuel-efficient cars that customers actually want to buy. There is little he can do to address that in the short term, but he can focus on where each of the brands is heading. Moreover, he could re-name the corporation, making Ford merely one of the brands.

Posted by: Rafael Seidl | September 06, 2006 at 03:49 PM

Ford spent too much time hanging on to truck-based designs, hoping against hope that prices at the pump would go down again. The new CEO's success will depend largely on what Ford has in the pipeline in terms of fuel-efficient cars that customers actually want to buy. There is little he can do to address that in the short term, but he can focus on where each of the brands is heading. Moreover, he could re-name the corporation, making Ford merely one of the brands.

Posted by: Rafael Seidl | September 06, 2006 at 03:49 PM

Raf: Henry Ford rolled over in his grave at your last suggestion.

My suggestion would be to look more closely at the Focus WRX and incorperate a hybridization. This could be a Subbie beater that had the cool factor plus economy. I do agree that there needs to be some consolidation or liquidation. The dilution of Land Rover is apparent... look at the Expedition and the Range Rover.

Posted by: ed | September 07, 2006 at 12:07 PM

Post a comment
[Please keep comments on topic. Disagreement is fine; insults, abuse or wild diversions are not. Comments not meeting those standards will be deleted. Abuse of another commenter’s email address will result in the banning of the offender from this site. In an attempt to prevent the posting of insulting and abusive comments, this site maintains a list of prohibited words and phrases, which, unfortunately, grows with time. Including one of the prohibited words or phrases will flag the comment as “spam”, and it will be blocked.]

Green Car Congress only allows comments from registered users. To comment, please Sign In.

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c4fbe53ef00d834b3bfde53ef

Listed below are links to weblogs that reference Ford Brings in Boeing Exec as New CEO; Bill Ford Remains as Executive Chairman:

Green Car Congress © 2009 BioAge Group, LLC. All Rights Reserved. | Home | BioAge Group