This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Alan Mulally Will Stay at Ford

Stocks in this article: BA F MSFT

DETROIT ( TheStreet) -- The reporting on the possible departure of Ford (F) CEO Alan Mulally for Microsoft (MSFT) fascinates me because it is so clearly being reported from two different sides.

The Ford side has seemed nearly certain that Mulally will stay, even if stories on Friday in The Detroit Free Press and The Detroit News opened the door a bit. "Those who know Mulally say there are many reasons why the move makes sense for a man who is already credited with saving two iconic American companies," the News reported, while the Free Press talked about the financial implications of Mulally 's potential departure.

However, Ford is denying Mulally will leave, as it has consistently. Three weeks ago, the last time Mulally-to-Microsoft chatter crested, Ford spokesman Jay Cooney said: "There is no change from what we announced in November -- Alan Mulally plans to continue to serve as Ford's president and CEO through at least 2014." Cooney told me the same thing on Saturday. Mulally has consistently denied that he will leave. Also on Friday, The Detroit News talked with Ford President Mark Fields and then reported that "the apparent successor to Mulally said Friday that there are no immediate plans for him to take over in Dearborn."

I view the denials as firm. The auto industry is covered by a lot of good reporters, all of them in Detroit, and I don't think they miss much.

Yet a good reporter on the tech side sees it differently. Kara Swisher, a writer for AllThings D, a Web site that covers technology, stirred all this up on Thursday, writing that Mulally "has vaulted to the forefront of the candidates to become the new CEO of Microsoft." She noted: "Sources said Mulally has not entered formal contract negotiations with Microsoft, but that discussions with him about the job have been serious."

It seems clear from the story that people at Microsoft believe Mulally is coming there. Microsoft people, I assume, are much like the rest of us: They hear what they want to hear. They are, however, billions of dollars wealthier than the rest of us, so I imagine they do not generally expect that someone might conceivably tell them no. When you read that Mulally still has his house in Seattle and has friendships with Bill Gates and Steve Ballmer, you can only imagine the level of the temptation he faces. He fixed Boeing (BA), he fixed Ford, and now he can fix something else and not have to commute so far.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs