Through TheFLY's Eyes: Ford
The initial Wall Street consensus regarding Ford’s (F) decision to replace CEO Bill Ford with Alan Mulally is that it’s a substantive step in the right direction, but that much work remains, if Ford is to attain turnaround status.
A Boeing (BA) veteran, Mulally has restructuring experience stemming from his work at the aerospace giant. In addition to restructuring work, Mulally also has production and product-development expertise. Further, in naming an outsider, analysts say the Ford organization has a chance to avoid the “herd mentality” syndrome that so often characterizes auto industry moves. Mulally represents an opportunity to introduce new ideas and fresh thinking to the denizens in Detroit.
And Wall Street appears to be calculating that the Mulally appointment is the first step in the innovative solutions direction. Ford shares rose 28c to $8.67 in Wednesday afternoon trading.
Wall Street used to reserve an old inertia saying for General Motors (GM). The saying goes: This is how General Motors solves a problem: “Ready, aim, aim, aim, aim, aim…..” Lately, however, that quality could have been best attributed to Ford. Wall Street is hoping Mulally will change that trend.