Turnaround · United States · 2006–2014
Ford under Alan Mulally: mortgaging the blue oval
Ford borrowed about $23.6 billion against nearly everything it owned, sold its luxury brands, and focused on ‘One Ford’ — becoming the only big US carmaker to avoid a government bailout.
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
by the numbers
- Loss (2006)
- about $12.7 billion
- Loans raised (2006)
- about $23.6 billion
- Jaguar Land Rover sale (2008)
- about $2.3 billion
- Returned to profit
- 2009
What happened
When Alan Mulally arrived from Boeing in 2006, Ford was losing heavily — about $12.7 billion that year — and ran a confusing collection of brands with separate regional operations. Mulally quickly borrowed about $23.6 billion, pledging factories, patents, and even the blue oval logo as collateral.
He sold Aston Martin, Jaguar and Land Rover (to Tata Motors for about $2.3 billion in 2008), and Volvo (to Geely in 2010), focusing on the Ford brand with global models. In weekly business plan reviews, every executive colour-coded progress. When one finally admitted a ‘red’ problem, Mulally applauded — making it safe to surface bad news.
When the 2008–2009 crisis struck, GM and Chrysler needed government rescues and went through bankruptcy. Ford's earlier borrowing gave it enough cash to survive alone, and it returned to profit in 2009.
Timeline
- 2006
Mulally becomes CEO; big borrowing secured.
- 2008
Jaguar Land Rover sold to Tata.
- 2009
Avoids bailout; profitable again.
- 2010
Volvo sold to Geely.
what made it work
- Raised cash before the crisis, not during it.
- Focused on one global brand.
- Weekly, transparent reviews that made bad news safe.
- Sold distractions to fund the core.
the lesson
Raise money while you can, not when you must — and build a culture where problems surface early.
Apply it to your business
- 1Secure financing before you desperately need it.
- 2Reward people for reporting problems, not hiding them.
- 3Focus on the brands or lines that can win.
Laws at work in this story
Figures are rounded and drawn from public reports, company filings and widely cited coverage at the time. Check the company's latest filings before relying on any number.