In 2009, Ford was the lone member of the Big 3 U.S. automakers not to take a handout from the U.S. government to sustain its operations during the financial crisis. There were a number of reasons for this choice, but one of the main ones was Alan Mulally’s great desire to differentiate Ford from the other two big carmakers: General Motors and Chrysler. The strategy seems to be paying off, as consumers have shied away from purchasing cars from the two automakers that declared bankruptcy. It also has put Ford in a good position for the future. John Casesa, an automotive industry analyst, argues, “The speed with which Mulally has transformed Ford into a more nimble and healthy operation has been one of the more impressive jobs I’ve seen. It probably would have been game over for Ford already but for the changes he has brought.”152 When Mulally took over, Ford was a huge conglomeration of automobiles and designs. Mulally was adamant about getting rid of non-Ford brands and thus sold off Jaguar, Land Rover, and Aston Martin just at the right time, before the market collapsed. However, this decision was a particularly difficult one, because the culture at Ford previously had designated working on the “Ford” brand as a career killer. It was not where the best and brightest wanted to spend their time.153 Mulally’s vision for the company has been to revitalize the Ford brand, because he believed brand loyalty could not be replaced. When he first arrived at Ford, he asked for a product lineup and was surprised to discover the Taurus line had been canceled and renamed the Five Hundred. Mulally responded, “Well, you’ve got until tomorrow to find a vehicle to put the Taurus name on because that’s why I’m here. Then you have two years to make the coolest vehicle that you can possibly make.”154 He is betting the proverbial farm on the 2010 Taurus, and thus far, it has garnered extremely positive reviews, despite a price tag over $30,000. His push during the past three years—to build cars that will sell globally—represents a new method for Ford and goes completely against the grain of the company’s previous market segmentation strategies. European-developed small cars, such as the Fiesta and the Focus, are on their way to the U.S. market, which Mulally believes is the future of the company. At 63 years of age, Mulally doesn’t appear to be slowing down; more than ever, he seems excited about coming in to work every day.155

Questions:-

14.1 What do you think makes Alan Mulally an effective leader at this point in Ford’s history?
14.2 Would you consider Mulally a transformational leader? Why or why not?
14.3 If Ford had been forced to take money from the federal government to sustain its operations, would your opinion of his leadership change?