Ford has received a big payoff for not taking a federal bailout, like its crosstown rivals.
Like a coach that has found a successful formula, Ford Motor Co. CEO Alan Mulally said he plans to keep the company focused on its basic plan of emphasizing steady and continuing improvement in the company’s products. “We’re going to maintain a laser like focus on the plan,” he said.
“What a year. It was a fantastic year,” said Mulally, following a background briefing with reporters, adding that the domestic industry is in better shape than it was only a year ago when Detroit’s automakers had been castigated on Capitol Hill after appealing for federal aid. “What a difference going into this auto show,” said Mulally.
Mulally, who is now Detroit’s most senior CEO, said he was glad his presence in Washington helped General Motors and Chrysler win government support. Other governments support their auto industries, he said.
Thanks to its decision in 2006 to mortgage all of the company’s assets right down to the fabled Blue Oval, Ford is in a different place than its rivals. It was able to skip a government bailout – and avoid going into bankruptcy, as did Chrysler and General Motors.
So, Ford, which was lumped together with GM and Chrysler when it went to Washington, in late 2008, to testify about the industry’s worsening crisis, has now been able to set itself apart from its troubled, cross-town rivals.
“We’re still very cautious. But we had a good year,” said Mulally, adding that, “Everyone is focused on the economy and if things start to improve, we’ll be able to expand production very quickly.”
Mulally spoke from the floor of the Wayne Assembly Plant, long known as Michigan Truck. The name change reflects the fact that the factory will no longer produce pickups or SUVs but after a massive investment and retooling will gear up for the next generation Focus. Due to market next year, it will be the latest in a series of “world cars,” a switch from the current Focus, which was developed specifically for the States.
“The good thing is we never stopped spending money on products,” Mulally said.
Thus, Ford will continue to introduce and promote new vehicles, while investing in new technology, added Mulally, who indicated that the automaker had no intention of slowing down productive development or improving the quality and reliability of Ford’s vehicles – which were recently praised by the influential Consumer Reports magazine as the only consistently world-class offerings coming from Detroit.
Mulally also said he feels “pretty good” about the economy and was optimistic about the prospects for a broader economic recovery, picking up momentum in 2010. However, it is critical for government officials around the world to stay focused on the economic conditions and to step in when needed to keep the economy moving ahead, he warned.