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THE EDITOR'S Q&A: Ford's Alan Mulally [full version] 

Unlike the other two firms comprising the Detroit 'Big 3', Ford Motor Company has managed to avoid filing for Chapter 11 in the worst recession to hit the US auto industry in decades. The firm is moving closer to sustainable profitability at much lower volume. Many say that Ford CEO and President Alan Mulally can take considerable credit for that. Big corporate turnarounds aren't easy, but as he tells Dave Leggett, the important thing is to have a vision and act decisively.

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22 days ago
by Article comment

RE: THE EDITOR'S Q&A: Ford's Alan Mulally [full version] 

I had the opportunity to hear Mr. Mulally speak in New Orleans at this year's NADA Convention. I found him to an intelligent, humble, and very entertaining speaker. (Best line: I drive instead of taking the corporate jet to D.C.) I admire what he has done to help Ford weather this storm. It takes a strong leader to come in from another industry, implement a dramatic changeover in product offerings, and still have the support of the rest of the company. I wish him and Ford good luck.

22 days ago
by rboucher
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RE: THE EDITOR'S Q&A: Ford's Alan Mulally [full version] 

I share your admiration for Mulally... I expect to hear him speak in Detroit in January. Leaders able to turn around the culture of a giant corporation are rare, but I believe he has pulled it off.

Ford has had its share of bright talent for decades, but Ford management always seemed to spend 20% of the organization's energy on conflict... with suppliers, with dealers, with each other, and with the UAW of course. Mulally's single greatest achievement, IMHO, was getting all that talent at Ford aligned with the same goals and pulling in the same direction. His work is not finished yet, with the UAW rank and file in particular.

I believe this is the underlying key to success at Toyota, where Japanese proclivity for self sacrifice and harmony are a critical enabler. I think it is harder to pull off in an American corporation... although Ford and Toyota share the mixed blessing / curse of founding family members still active in the managment of huge public enterprises. Now there's a thread worth exploring a little further...

3 weeks ago
by billyjoejimbob
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RE: THE EDITOR'S Q&A: Ford's Alan Mulally [full version] 

Quote: It takes a strong leader to come in from another industry, implement a dramatic changeover in product offerings, and still have the support of the rest of the company. I wish him and Ford good luck.


It is all true what you are saying, and I wish him well too. But, in my view, the most important thing is, where he comes from – from what kind of industry. The guy who was leading Proctor and Gamble is definitely not suited for automotive industry. The timing is good for somebody with experience from aeronautic industry to come to lead Ford, which products are not a home cleaning products or potato chips… The time has come for automotive industry to take the cues from aeronautic industry. Mr. Mulally could be the man, who could initiate the graft (let’s not mix it with vaccination…). Will he drive Ford into making super-efficient cars? Similar to aeronautic industry, which has to satisfy its corporate clients by delivering more and more efficient planes? That remains to be seen, but I hope he will. The electric car, as it is built now (heavy and with poor aerodynamics), makes no sense - especially in jurisdictions depending on electricity from coal or other dirty energy sources. Smart grid makes lot of sense, but easing the load on it would require making much more efficient cars, which could be easily converted to electricity when all conditions to do [the conversion] are met – would permit the technologies to meet half way… And would allow for huge CO2 savings [right now] before customer is convinced to embrace the electric cars in great numbers. That will not happen tomorrow!
I’m afraid that premature marketing of electric cars, may not only increase the use of coal at source to produce electricity, but also will give the electric car a black eye… as it happened with ill conceived [engine-transmission management] application of CVT in Subaru-Justy in early 1990s.

3 weeks ago
by Mark Kmicikiewicz
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RE: THE EDITOR'S Q&A: Ford's Alan Mulally [full version] 

Ford just announced a $1 Billion dollar profit.

No government bailout, no bankruptcy and now a huge profit. Kudos

19 days ago
by rboucher
Forum moderator

RE: THE EDITOR'S Q&A: Ford's Alan Mulally [full version] 

Quote:Ford just announced a $1 Billion dollar profit. No government bailout, no bankruptcy and now a huge profit. Kudos
Ill-timed when you are looking for concessions from the Union, but Kudos nevertheless. I think Mulally's biggest mistake was negotiating the signing bonus (~$11 mil as I recall) and taking it all up front. I believe he banked something like $40 mil total in cash and valuable prizes the first year on the job.

When you are hired to lead a turnaround, you know you'll be asking the troops to sacrifice. You know they'll be looking at you to guage management's commitment to shared sacrifice. This is one area where Mulally's scorecard is lacking, and the UAW is calling him out on it.

18 days ago
by billyjoejimbob
Forum moderator

RE: THE EDITOR'S Q&A: Ford's Alan Mulally [full version] 

By not filing BK like GM & Chrysler Ford has a huge amount of debt that needs be paid/serviced. If they can't get the same wage concessions as the other two this puts them at a competitive disadvantage. Even with the concessions the experiences of GM & Chrysler is that they have so many Tier 1 union employees laid off that they have almost no Tier 2 employees on the payroll. It will take years for those concessions to have any effect.

18 days ago
by rboucher
Forum moderator

RE: THE EDITOR'S Q&A: Ford's Alan Mulally [full version] 

I did not realise that billy. Did he [Mulally] take his signing bonus all up front before the “cash for clunkers” was announced? How would have Ford looked like without cash for clunkers? Is one $billion a big deal considering Ford’s previous losses? Are we looking at captain leaving a sinking boat before anybody else?... taking with him a scarcely available life boat [~$40M in cash]? If yes, it would look really bad.

18 days ago
by Mark Kmicikiewicz
Forum moderator

RE: THE EDITOR'S Q&A: Ford's Alan Mulally [full version] 

Quote:This is one area where Mulally's scorecard is lacking, and the UAW is calling him out on it. /QUOTE]

Jeez.. I had no idea. Mulally is a banker at heart. It's the same behaviour that we're all blaming the bankers for - take the loot up front and if it all goes pear shaped, keep it. Hardly an incentive for long term planning when you've had the rewards before you even start ?

16 days ago
by ford-man

RE: THE EDITOR'S Q&A: Ford's Alan Mulally [full version] 

I should amend one of my earlier comments here: Mulally collected over $40 mil in total compensation in his first year with Ford. Some was signing bonus, some was salary, but I believe over half was stock at then current market value. A jumbo-jet load of money to be sure, but not all in cash.

The signing bonus is one of the great priveledges of the senior executive ranks... "If I leave my current job to work for you, I will leave behind $ xxx million in deferred bonuses, stock, options, perks... But, if you write me a check for $ xxx million, I'm yours." XXX is usually seven digits, often eight. The previous employer just saved $ xxx million... wait a minute... until they find out what signing bonus their new superstar CEO, COO, CFO candidate demands to jump ship. Round and around and around we go...

15 days ago
by billyjoejimbob
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