Former Ford CEO Donald Petersen recommended Mulally to Ford, and he was named the President and CEO of Ford Motor Company on September 5, 2006, succeeding Bill Ford, who became executive chairman.
Mulally called his Lexus LS430 the 'finest car in the world', just as Ford was about to announce his selection as CEO, making the point that Ford was not then in a leadership position, though he then faced some criticism and switched to driving Ford models.
William Clay Ford Jr. had been searching for his successor as Ford CEO for some time, with Daimler AG's Dieter Zetsche and Renault/Nissan Motors's Carlos Ghosn both turning down the offer.

One of Mulally's first decisions at Ford was to bring back the Taurus nameplate.
 He said that he could not understand why the company previously scrapped the Taurus, which had been one of the company's best sellers until losing ground in the late 1990s.

Mulally took over "The Way Forward" restructuring plan at Ford to turn around its massive losses and declining market share.
Mulally's cost-cutting initiatives led to the company's first profitable quarter in two years.
Dividends to shareholders were also suspended.

In 2006 Mulally led the effort for Ford to borrow US$23.6 billion by mortgaging all of Ford's assets.
Mulally said that he intended to use the money to finance a major overhaul and provide “a cushion to protect for a recession or other unexpected event".
At the time, the loan was interpreted as a sign of desperation, but is now widely credited with stabilizing Ford's financial position, compared to crosstown rivals General Motors and Chrysler, both of whom subsequently went bankrupt during the automotive industry crisis of 2008–2009.
Ford was the only one of the Detroit Three that did not ask for a government loan.
Mulally did testify before the United States Congress in favor of government loans for General Motors and Chrysler, discussing the impact to the economy and to other automobile manufacturers if parts suppliers were to go bankrupt in the light of a GM or Chrysler collapse.
In May 2009, Ford chairman William Clay Ford, who hired Mulally, said that "Alan was the right choice [to be CEO], and it gets more right every day".

In 2007, he presided over the sale of Jaguar Cars and Land Rover to Tata Motors, an Indian car and truck manufacturer.
Mulally said he had "no regrets" over the sale, preferring to concentrate on the Ford brand, as then-CEO Jacques Nasser was criticized in 2001 for paying too much attention to new overseas acquisitions while letting the main Ford operations in the U.S. decline.
Ford received US$2.3 billion on the sale, considerably below what they paid for it under Nasser and Donald Petersen.
However, analysts said that Ford would have gotten much less or might not have found a buyer if they had tried to sell it later in 2008, as Jaguar Land Rover sales subsequently plummeted due to high oil prices in the summer, causing Tata to request a bailout from the British government.
Mulally also sold off Aston Martin and Volvo Cars, and reduced Ford's stake in Mazda.

In 2008, amid mounting losses during an economic downturn, Ford announced a proposal on December 2, 2008, to cut Mulally's salary to $1 per year if government loans were received and used by Ford.
During hearings for government loans to Ford, he and other industry leaders were criticized for flying to Washington, D.C. in corporate jets.
During a subsequent meeting, he traveled from Detroit to Washington by a Ford-built hybrid electric vehicle, while selling all but one of the company's corporate jets.

In 2008, Mulally earned a total compensation of $13,565,378, which included a base salary of $2,000,000, stock awards of $1,849,241, and option awards of $8,669,747.
His total compensation decreased by 37.4% compared to 2007.

Due to his achievements at Ford, he was included in the 2009 Time 100 list.
The entry, written by Steve Ballmer, says, "[Mulally] understands the fundamentals of business success as well as any business leader I know".

In 2011, Mulally was named Person of the Year by the Financi
Former Ford CEO Donald Petersen recommended Mulally to Ford, and he was named the President and CEO of Ford Motor Company on September 5, 2006, succeeding Bill Ford, who became executive chairman. Mulally called his Lexus LS430 the 'finest car in the world', just as Ford was about to announce his selection as CEO, making the point that Ford was not then in a leadership position, though he then faced some criticism and switched to driving Ford models. William Clay Ford Jr. had been searching for his successor as Ford CEO for some time, with Daimler AG's Dieter Zetsche and Renault/Nissan Motors's Carlos Ghosn both turning down the offer.
One of Mulally's first decisions at Ford was to bring back the Taurus nameplate.  He said that he could not understand why the company previously scrapped the Taurus, which had been one of the company's best sellers until losing ground in the late 1990s.
Mulally took over "The Way Forward" restructuring plan at Ford to turn around its massive losses and declining market share. Mulally's cost-cutting initiatives led to the company's first profitable quarter in two years. Dividends to shareholders were also suspended.
In 2006 Mulally led the effort for Ford to borrow US$23.6 billion by mortgaging all of Ford's assets. Mulally said that he intended to use the money to finance a major overhaul and provide “a cushion to protect for a recession or other unexpected event". At the time, the loan was interpreted as a sign of desperation, but is now widely credited with stabilizing Ford's financial position, compared to crosstown rivals General Motors and Chrysler, both of whom subsequently went bankrupt during the automotive industry crisis of 2008–2009. Ford was the only one of the Detroit Three that did not ask for a government loan. Mulally did testify before the United States Congress in favor of government loans for General Motors and Chrysler, discussing the impact to the economy and to other automobile manufacturers if parts suppliers were to go bankrupt in the light of a GM or Chrysler collapse. In May 2009, Ford chairman William Clay Ford, who hired Mulally, said that "Alan was the right choice [to be CEO], and it gets more right every day".
In 2007, he presided over the sale of Jaguar Cars and Land Rover to Tata Motors, an Indian car and truck manufacturer. Mulally said he had "no regrets" over the sale, preferring to concentrate on the Ford brand, as then-CEO Jacques Nasser was criticized in 2001 for paying too much attention to new overseas acquisitions while letting the main Ford operations in the U.S. decline. Ford received US$2.3 billion on the sale, considerably below what they paid for it under Nasser and Donald Petersen. However, analysts said that Ford would have gotten much less or might not have found a buyer if they had tried to sell it later in 2008, as Jaguar Land Rover sales subsequently plummeted due to high oil prices in the summer, causing Tata to request a bailout from the British government. Mulally also sold off Aston Martin and Volvo Cars, and reduced Ford's stake in Mazda.
In 2008, amid mounting losses during an economic downturn, Ford announced a proposal on December 2, 2008, to cut Mulally's salary to $1 per year if government loans were received and used by Ford. During hearings for government loans to Ford, he and other industry leaders were criticized for flying to Washington, D.C. in corporate jets. During a subsequent meeting, he traveled from Detroit to Washington by a Ford-built hybrid electric vehicle, while selling all but one of the company's corporate jets.
In 2008, Mulally earned a total compensation of $13,565,378, which included a base salary of $2,000,000, stock awards of $1,849,241, and option awards of $8,669,747. His total compensation decreased by 37.4% compared to 2007.
Due to his achievements at Ford, he was included in the 2009 Time 100 list. The entry, written by Steve Ballmer, says, "[Mulally] understands the fundamentals of business success as well as any business leader I know".
In 2011, Mulally was named Person of the Year by the Financi
Alan Mulally