Ford CEO says regulation often hurts innovation

DETROIT — Ford Motor Co. CEO Alan Mulally said government regulation in many ways has hurt innovation among businesses and manufacturers in the United States.

"We've become so stymied with regulation," said Mulally Wednesday during a panel discussion on innovation in manufacturing at The National Summit in Detroit. "We have to say enough is enough and get back to freeing people up."

Pulling on his experience as the head of Boeing and now Ford, Mulally said U.S. businesses need to be at the forefront of innovation again. Corporate scandals, government bailouts and bankruptcy filings have put a blemish on the business sector.

"We've got to make it cool to be in business again," he said. "We really have to re-polish the value of what business brings to mankind."

Nonetheless, Mulally said the recent fuel efficiency and emission standards set by the Obama administration brings a "tremendous benefit" to companies such as Ford when designing new vehicles because it unifies standards set by several states under a federal umbrella.

Mulally said that Ford, the only major U.S. automaker which has not sought government assistance, is working toward profitability and increased market share, particularly with the rollout of new cars such as the 2010 Fusion and Taurus.

"Ford is in a different place," Mulally told reporters following the panel discussion. "People want to be with a company they know is viable and is going to be here for the long-term."

Ford has been in contact with the president's auto task force regarding parts suppliers, many of them struggling as low sales volume has halted production at many Chrysler Group and General Motors Corp. plants.

"The supply base is the most important thing in our industry right now," Mulally said.

With a goal to reach profitability or break even in 2011, Ford has modified its contract with the United Auto Workers union, cut debt by nearly $10 billion and retooled some plants to expand their vehicle production abilities.

Mulally said those efforts would continue, adding that the company will seek to improve its balance sheet even further when it reaches profitability.

Mulally has Ford would likely seek further concessions from its UAW on top of the modified contract ratified in March. GM and Chrysler workers have also modified their contracts, but some of the modifications go deeper than Ford's.

"We continually talk to the UAW and the CAW (Canadian Auto Workers union)," he said, adding that a no strike clause until 2015 is "just one piece of the conversation we're having with them."

GM and Chrysler workers agreed to place a no-strike clause in their modified agreements.

Shares of Ford rose 10 cents to $5.77 in midday trading Wednesday.