Al Mulally’s Journey as Ford’s CEO: Turning the Company Around

Summary

In this article, we explore Al Mulally’s experience as the CEO of Ford, where he turned around the company during a difficult time in the car industry. Mulally’s leadership and strategic decisions helped Ford become one of the most profitable car companies, with a focus on the Ford brand, quality, fuel efficiency, smart design, and safety. We also discuss the future of the car industry, including the possibility of Apple creating a car, the use of alternative fuels, and the integration of technology in vehicles.

Al Mulally’s Leadership and Strategic Decisions
Ford’s Success and Future Plans
The Future of the Car Industry

Al Mulally’s Leadership and Strategic Decisions

When Al Mulally took over as the CEO of Ford in 2006, the company was in disarray, with its stock price dipping below a dollar in 2009. However, Mulally’s leadership and strategic decisions helped turn the company around. He focused on the Ford brand, investing in it, and committing to being best in class in quality, fuel efficiency, low CO, smart design, and safety. These characteristics were universal around the world and enabled the team to work together towards a common goal.

Mulally’s decision not to declare bankruptcy like their competitors in the car industry did not put them at a disadvantage. In fact, within a week of the bankruptcy hearings, 98% of people in the US knew about the situation and 74% had checked out Ford’s vehicles on their website. Despite taking a small home improvement loan of $23.5 billion and leveraging their brand promise, they have repaid the entire loan and moved back to investment grade with one of the rating agencies.

Ford’s Success and Future Plans

Under Mulally’s leadership, Ford has had one of its best quarters in its 107-year history and is now worth $42 billion. Ford has successfully implemented their plan to use their resources worldwide to deliver on their brand promise, resulting in an exciting and profitable future for the company. The idea of the car as the ultimate mobile app is becoming increasingly relevant, with Tesla’s electric cars being compared to laptops on wheels.

Ford offers a power of choice in their vehicles, which include petrol or diesel, hybrid, plug-in hybrid, and all-electric options. The company is also investing in alternative fuels, including biomass, ethanol, and natural gas, as well as the electrification of vehicles. The integration of Microsoft and other technology partners in the development of applications that can be managed through smartphones, allowing for hands-free and eyes-on-the-road use, is also a priority for the company.

The Future of the Car Industry

The speaker in the video also discusses the possibility of Apple creating a car using similar manufacturing techniques to those used in their other products. They believe that the integration of the electric network, telecommunication network, and human network is important for the future of vehicles. The four pillars of quality, fuel efficiency, safety, and smart design are also crucial in the development of vehicles.

The use of hydrogen as a clean energy source is also a possibility for the future of the car industry. With the integration of technology in vehicles, the car is becoming more than just a mode of transportation. It is becoming a mobile app that can connect with other devices and networks seamlessly.

Conclusion

Al Mulally’s leadership and strategic decisions helped turn Ford into one of the most profitable car companies in the world. The company’s focus on the Ford brand, quality, fuel efficiency, smart design, and safety has resulted in a successful and exciting future for the company. The future of the car industry is also bright, with the possibility of Apple creating a car, the use of alternative fuels, and the integration of technology in vehicles.