Ford page 6

Ford page 6 by ric gustafson


In April of 2006, gas prices were again on the rise. Because of this, the sale of mid sized sedans rose. The bad news was that Ford's truck sales fell fifteen percent and Explorer sales were down forty two percent. By June of 2006, Ford stock was selling for less than $ 7 a share and it's bonds were deep into junk territory. In July, Toyota outsold Ford for the first time.
In July, Bill Ford Jr made a plea to the company's board of directors. Ford had fallen behind Toyota and bankruptcy talks were starting. Ford Jr knew that he had to find a new CEO. He found Alan Mulally who was head of Boeing's Commercial Airplanes Group. Ford Jr greeted Mulally at his estate and told him the history of the company starting with Henry Ford to his tenure as CEO. Ford Jr asked Mulally about his background at Boeing and how he coped with crisis. Ford Jr told him that the company had good hardworking people but needed a good leader to guide them. Mulally knew that the challenges facing Ford were the same ones he dealt with at Boeing. Some ideas he was already thinking about was to eliminate the Mercury and Lincoln lines, trim the dealer base and close more plants.To thank Mulally for his services, Ford was going to give him a salary of two million a year.


research help: ' American Icon' by Bryce G Hoffman


Peace and God's blessings. Love Ric