Since then, Ford has lost nearly $1.5 billion. Last month, it said it would cut its production in the last three months of the year by 21 percent, the largest cut it had taken since the early 1980’s. Ford also has halved its dividend and Mr. Ford has warned employees that the company expects to take significant steps in an effort to restructure.  Mr. Mulally spent 37 years at Boeing, where he most recently served as chief executive of Boeing Commercial Airplanes. Well-regarded in the airline industry, Mr. Mulally had been passed over twice during the past few years for the chief executive’s title at Boeing.  Mr. Ford, in a memo to employees, said today that the company needed a restructuring expert “who has led a major manufacturing enterprise through such challenges before.”  Although Mr. Mulally does not have any automotive experience, he used manufacturing techniques borrowed from the industry to streamline Boeing’s assembly operations and its aircraft development.  In particular, Mr. Mulally studied the development of the Ford Taurus, a family car designed in the mid-1980’s to compete with sedans offered by Toyota and Honda. Ford put together a group of designers, engineers, manufacturing experts and others to develop the Taurus, known for its then-radical aerodynamic appearance.  In addition, Mr. Mulally is a student of the Toyota Production System, which the Japanese automaker uses in its operations around the world. The Toyota system, known as T.P.S., emphasizes the elimination of waste, continuous improvement and involving workers in fixing problems on the assembly line.  Mr. Mulally applied those lessons to the development of the Boeing 777 aircraft, a long-range plane that joined its fleet several years ago. More recently, Boeing has begun taking orders for a new mid-range plane, the 787, which is meant to take the place of the Boeing 757 and 767 in its lineup.  The successful start of marketing for the 787 has helped Boeing beat back a strong challenge from the European aircraft maker, Airbus, which has run into a series of delays with its new long-range aircraft, the Airbus A380.  Mr. Mulally, known for his affable personality, took a hands-on approach in marketing the 787 to the airlines, said Douglas M. Steenland, the chief executive at Northwest Airlines.  “I think Alan deserves a lot of credit for getting Boeing positioned today as a product leader with the 787,” said Mr. Steenland, whose airline has ordered 18 of the planes.  In an interview, Mr. Steenland said Mr. Mulally, who drives a Lexus luxury car, would need time to get up to speed on his new company. But he added: “Executive skills are transferable. Sometimes it helps to have a background in other businesses when you come into a new one.”  Mr. Ford said he felt Mr. Mulally’s experience dealing with labor unions, fuel prices and the economic turmoil caused by the attacks of Sept. 11, 2001, would serve him well at Ford. “Certainly, the challenges Boeing faced in recent years has many parallels to our own,” Mr. Ford said in a statement.  Mr. Ford, great-grandson of the company’s founder Henry Ford I, said he will stay actively involved in the company, where he has served as the de facto chief operating officer since July.  The appointment of Mr. Mulally, who will join the Ford board, came as a complete surprise in Detroit. Over the past several years, Mr. Ford had approached Carlos Ghosn, chief executive at both Renault and Nissan, about joining Ford.  Mr. Ghosn is now leading his company in negotiations on a three-way alliance with General Motors, a deal that was suggested by G.M.’s biggest shareholder, Kirk Kerkorian.  Mr. Ford recently called Mr. Ghosn to ask him to consider a deal with Ford if talks with G.M. fail. But Mr. Ghosn said he would not discuss such an arrangement until the G.M. discussions conclude in mid-October.  Mr. Ford began speaking to Mr. Mulally about joining the company several months ago, people with direct knowledge of conversations said tonight. The discussions were assisted by the former House minority leader Richard Gephardt, who knows both executives.  In the memo to Ford employees, Mr. Ford emphasized that he did not plan to let up on his efforts to fix the auto company.  “I’ll be here every day and I will not rest until a prosperous future for this company is secured,” Mr. Ford said. “As I have said many times, I have been part of this company since I was born and I will be a part of it for the rest of my life.”
William Clay Ford Jr. is giving up the title after five years and will be replaced by Alan Mulally, an executive at Boeing.