Is Ford Ready for Life After Mulally?

Ford was the only of the three big domestic automakers not to fall into bankruptcy or take bailout funds during the Great Recession. The main reason was CEO Alan Mulally's decision to take out more than $23 billion in loans before the credit markets dried up. That allowed Mulally and Ford to continue developing new vehicles, a main reason for the quality difference between it and General Motors right now.

Clearly, Mulally has done a great job at Ford, and that makes investors nervous about what happens when he eventually leaves. Most believe Mulally will step down by late 2013 and that current President of the Americas Mark Fields will replace him. If that happens, it wouldn't materially change the way Brendan views Ford -- there have been rumors of a non-executive chairman role for Mulally, and Fields would probably lead Ford in much the same way Mulally did. Check out the following video for more on Ford going forward, and how it affects its competitors.

Ford has been performing incredibly well as a company over the past few years -- it's making good vehicles, is consistently profitable, recently reinstated its dividend, and has done a remarkable job paying down its debt. But Ford's stock seems stuck in neutral. Does this create an incredible buying opportunity, or are there hidden risks with the stock that investors need to know about? To answer that, one of our top equity analysts has compiled a premium research report with in-depth analysis on whether Ford is a buy right now, and why. Simply click here to get instant access to this premium report.

 

Blake Bos has no positions in the stocks mentioned above. Brendan Byrnes owns shares of Ford and General Motors. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On September 23, 2012, at 9:24 AM, autoinsider wrote:

    I will never buy a Ford. Mulally is paid too much.

  • Report this Comment On September 23, 2012, at 10:25 AM, wolfman225 wrote:

    ^Until they return to being General Motors and stop being "Government Motors" I won't buy GM. Fair enough.

  • Report this Comment On September 23, 2012, at 3:53 PM, mistacy wrote:

    If you are not buying a product because the CEO of the company is paid too much then you probably should stop buying 99% of all the goods you are buying. That aside, "I will never buy a ford" mentality is exactly what creates missed opportunity for investors. Ford has come around amazingly & is not the same company with low quality products it used to be. Ford is definitely reaching for & not far behind the top company in the car industry. A year or so, & many more Fords will be on the roads. Why? The 2013 models are of very good quality, competitive with other brands, & they look good.

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