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Free Press: Why are you making this change in management right now?
Mulally: Well, Don's had a great career and we decided we can accommodate his retirement now. We have a great succession plan with Lewis Booth able to join the team. So, it'll work out OK. They're going to have a tight transition plan over the next few weeks and so I think ... it'll work for everybody.
Free Press: Was Leclair under a lot of stress in the current environment? Why leave now?
Mulally: Again, he's had a great career. We're all working hard. He stated he wanted to spend a little more time with his family and, you know, relax a little bit. And that's pretty understandable. In fact, we've had a good succession plan in able to back him up.
Free Press: Your share price is close to $2. Do you think shareholders are acting rationally in their assessment of Ford stock? Why are Ford shares worth buying?
Mulally: I think the consumer confidence has really been hurt and that's why we're seeing the response across the stock market, not just Ford. To your other point, I think clearly that the response we've gotten over the last several years about our plan to focus on the Ford brand and leverage our global assets, be in all of the markets, move to common platforms, the whole One Ford strategy has been appreciated by everybody.
I haven't heard anybody saying that we're not doing the right things for the long term. But really we have a hair-trigger strategy with the economy.
Free Press: So do you think people should go out there and buy Ford stock?
Mulally: I'm not a financial adviser. ... But clearly we're focused on creating a more valuable Ford going forward.
Free Press: What is your assessment of your cash position for the next 12-18 months?
Mulally: I think we're being very disciplined in our cash management and as you know, Sarah, we went to the market early, over a year and half ago, and we decided to borrow enough and also have a cushion in case the economy degraded even further. And in hindsight, that was very prudent. So I like our conservatism and, of course, we have our lines of credit. And as the criteria are written for the direct loans, we'll access that to help the transformation to the more fuel-efficient vehicles. So we are managed the cash very disciplined and very carefully. We're in a good place right now.
Free Press: Credit availability seems to be big issue for your suppliers, your consumers, across the board. How concerned are you about your consumers' ability to get credit to buy cars and trucks?
Mulally: Well, I think we are very concerned about the availability of credit not just from the automobile purchaser but the availability of credit for our economic system. Banks to banks and banks to industry, everything has tightened down, and so the biggest concern here is that it will contribute to a slowing economy, which will hurt all of us. It's something that really needs to be addressed. I have a lot of faith in the secretary of the Treasury and the Fed and their fiscal and monetary policy. They are working it hard, and I think we'll get it turned around.
Free Press: It seems you are interested in raising more cash. You authorized the issuance of $1 billion more in common stock. Some experts say you are just diluting your own stock. Was this move a mistake?
Mulally: Well it's part of us improving our balance sheet and so our debt for equity swaps are part of that managing the balance sheet, which is a normal thing.
Contact SARAH A. WEBSTER at 313-222-5394 or swebster@freepress.com.
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