Ford leadership

Many find pride in the fact that Alan Mulally, product of Lawrence, is one of the few bright spots in the ongoing battle to save America’s major auto producers. Mulally is the chief executive officer of the Ford Motor Co. after a long and successful career with the Boeing aviation giant.

The Ford firm is considered to have a better chance of survival than Chrysler and General Motors because of Mulally’s foresight and actions. While the other two firms are begging for handouts, Mulally is asking that Ford be accorded a $9 billion backup package — with that money to be used only if current procedures fail to measure up to the challenges that lie ahead.

By, in effect, bypassing government bailout money, Ford people say they hope to move along to profitability before the other two cash-seeking competitors. Mulally and executive chairman Bill Ford Jr. say they are confident that borrowing coupled with restructuring and new product plans can get them through the current recession without relying on government money.

Said Ford: “I think if they see Ford as a company trying to pull itself up by its own bootstraps, and making it on its own and pulling the right levers, I think that could be a positive for us.” Mulally says that Ford already had completed a lot of the restructuring Congress is demanding of the other two firms. It has slimmed down its brands by selling Jaguar, Land Rover and Aston Martin and is considering the sale of Sweden’s Volvo.

Ford factory capacities reportedly have been cut to match public demand and more cuts will be needed. While Ford does not yet have quite the union agreements that Chrysler and General Motors were forced to get, it does expect the same concessions from the auto union even if Ford is not strictly under government supervision.

Ford, at least currently, is in a much better cash position, and Mulally and Ford Jr. think they can work through the crisis. Evidence is the Lawrence man has figured prominently in the more favorable status of his auto firm. We can hope he is on the right track and that things continue to improve under his guidance.

What’s good for Ford might prove to be good for the country.