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Did CEO Alan Mulally Save Ford?

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  • Description

    'American Icon' author Bryce Hoffman argues Ford was closer to bankruptcy than we knew.

  • Duration 4:01
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Discounts.

We'll Ford is the only US auto maker didn't file for bankruptcy or take taxpayer funded bailout money in 2009.

Was it CEO Alan Mulally is moves that saved the Ford Motor Co.

Breaks -- covers the auto industry for the Detroit news and he went inside -- headquarters for the answers in his new book.

American icon it hits bookstores today right thank you so much for joining us.

You know we all think of Alan Mulally and Ford as a company that you know what's really does stand out Detroit didn't take the bailout money.

The using actually -- a closer to bankruptcy than we all think.

That's right one of the things I -- Melissa -- doing this book was just how close Ford got to bankruptcy how many reached the point where they stop watering the plants in the site you are stop watering the -- watering the plants how much the cost a wider plants or did they just think they're going away if they didn't need -- what's the holiday when it was about saving every -- -- -- even -- part of vice president's signature to order office supplies.

And so -- -- you know as General Motors and Chrysler were kind of going into a nosedive people were focused on them they didn't see how close Ford came but they made the decision to save themselves and -- -- doing without government bailout.

Thank you get -- -- credit about huge amount of credit I mean it was a really tough decision to make because Walt Washington was they -- offering them money.

And I knew that if they didn't take it then they were gonna get a check and six months and you know congress to me to really clear this now or never one time thing.

Wow so it was a huge risk also tempers were high I mean you describe future CEO candidate mark fields plunging at the CFO over.

One budget cut rate tells that story.

Yet this is actually right before Mulally came on board and end in in late 2005.

Early to -- 2006 the company was already headed towards bankruptcy.

And it was really company at war with that sells the executives -- fighting with each other people were jockeying for position and meanwhile but the whole company was kind of falling apart that was just -- real example at one point -- meeting.

Mark fields literally you know when across the table after after the CFO when he demanded more budget cuts and bill -- separate them.

As a result -- that I mean if you did out of this -- get a whole lot of trouble I don't think you would be here the next day.

But this just tempers -- highs so there you go I think it's it's things at a time how high the stakes were and how how stressed out people war now.

EU have a pretty glowing picture of Alan Mulally in the book which I know a lot of people do at the same time you know there's lot of criticism out there for him for example.

You know he was a big -- to push for the in car technology.

My Ford touch which is you know some people -- -- the industry poster child for distraction behind that we -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- So they -- a big bet on this very cutting edge technology.

And I think that you know for older consumers have proved difficult to use even for some younger consumers -- -- to be a bit of an issue.

I think that they're still working the bugs out on it and I think they've got a lot of street cred from the younger car buyers for haven't -- up.

Another thing that gets really criticized for is what's happened to Lincoln.

-- you know the Town Car was a mainstay.

A lot of dealers still angry about.

It wasn't behind the branded and it -- years from this sort of step in and sort of backed that also Mercury.

I mean is that criticism deserved.

We know there there is a lot of dealers who who wanted to see Mercury kept on life support kept alive but if you look at Mercury sales and they were just diminishing to almost nothing cap and Mulally really wanted to focus the company on fixing the blue -- -- he was convinced to keep -- Lincoln.

But you know they still definitely have not gotten Lincoln right they've now invested a bunch of warm cash in another revitalization of Lincoln.

TVD whether that works.

Down really interesting book price thanks so much for coming in at -- -- his interest in reading about.

A company going to the brink and then bringing itself back in sort of everything that goes on inside of such a historic company in the United States really just read thanks so much for joining us and we appreciate it thank.

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