Boeing man to fly Ford

The Ford Motor Company has installed Alan Mulally (pictured), formerly Boeing's vice president of Engineering, as its new CEO and President.

Mulally, aged 61, had been with Boeing for 37 years, most recently as executive vice president and as president and chief executive officer of the commercial airplanes unit since 2001. Mulally has also been elected to Ford's board of directors.

The announcement means that Ford, 49, will "shed his current additional duties as CEO and chief operating officer and concentrate on the company's strategic positioning as it engages its accelerated Way Forward plan, expected to be unveiled later this month."

By its own admission America's second-largest automaker is struggling with declining sales and faces further restructuring. The search for a new CEO began early this year after Ford Jr told directors he was "wearing too many hats".

Ford Jr takes on the role as Executive Chairman, as Mulally does CEO, immediately.

Instrumental in Boeing's recent turnaround Mulally says "the fundamentals" between the automaker and Boeing are the same. "Any new airplane or automobile starts with a point of view about the future," he said.

Ford dealers in the US say Mulally's involvement comes as a "relief".

"Boeing came from behind and showed that despite government subsidies in Europe (for competitor Airbus), they could compete," Lincoln Mercury dealer, Ed Witt, told US agency, Bloomberg News.

"They [Boeing] had to go through a lot of pain, but they are getting it done. I'm impressed by that and whatever Mulally had to do with that, he's got my vote," Witt said.