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Auto investor Kirk Kerkorian dead at 98

Kirk Kerkorian, among the most talked-about investors in the American auto industry in recent memory, died at the age of 98 in Los Angeles on Monday, June 15. The billionaire ran the investment company Tracinda Corp. and was the largest shareholder in MGM Resorts International. Kerkorian attempted to use his power as a well-financed investor to push the auto industry in some fascinating ways. In 2006, he used his nearly 10-percent stake in General Motors to push a merger with the Renault-Nissan Alliance. The deal made it as far as discussions, but eventually fell through. Kerkorian also attempted to purchase Chrysler - twice. According to Automotive News, the first effort came in 1995 with a $22.8-billion offer for the automaker, and soon after it failed the company merged with Daimler. Then in 2007, Kerkorian was back with a bid for $4.5 billion, but things eventually fell to Cerberus. The billionaire finished the trifecta by buying up $1 billion in Ford stock in 2008 to make Kerkorian the single largest investor in the company. However, the situation didn't last long, and by the end of that year, he had unloaded the shares. According to Automotive News, Kerkorian was ranked by Forbes as the world's 41st richest man in 2008 with a net worth of $16 billion. News Source: Automotive News - sub. req.Image Credit: Joe Cavaretta / AP Photo Celebrities Earnings/Financials Chrysler Ford GM obituary

What next for Alan Mulally?

Alan Mulally has emerged as a hero when it comes to American manufacturing. He came to Ford in 2006 after serving as head of Boeing's commercial aircraft division, streamlined operations, sold off the costly elements of its Premier Automotive Group and saved Ford from having to be bailed out by the federal government like its cross-town rivals Chrysler and General Motors did. But as we reported mere days ago, he's widely expected to step down from the chief executive's office at Ford shortly.
So what's next for one of the most successful executives in the business? Hard to say, but don't expect Mulally to disappear into retirement. Though he didn't ultimately take the top job at Microsoft, industry insiders expect to see him in another influential position - likely as a board director or even chairman of another company. (We say "another company" and not Ford because while Bill Ford may have stepped aside as CEO to bring Mulally on board in the first place, we don't see him giving up his chairmanship of the board also.)
Mulally has likely already lined up his next move, and could either announce what that move will be as soon as Ford confirms Mark Fields as his successor, or could wait awhile. Insiders speculate that he could leverage his transportation and aerospace experience into a position at General Electric or a major airline, his manufacturing expertise to benefit a company like Procter & Gamble or his management skills at a consultancy firm.

Ford recalls Five Hundred, Mercury Montego sedans over fuel tank woes

Ford has announced through the National Highway Traffic Safety Administration that it is recalling nearly 3,000 examples of its Five Hundred and Mercury Montego (pictured) sedans from the 2007 model year.
The action, which affects 2,945 vehicles, is due to potentially defective welds between the filler neck and the fuel tank, a condition that could result in a fuel leak or the smell of gasoline reaching the occupants. In the worst-case scenario, a leak could cause a fire. Cars with the affected fuel tank problem could see an illuminated dashboard warning light as a result of the evaporative emissions leak being detected.
Ford will inspect and replace the fuel tank at no cost to owners (those who have already had the procedure done at-cost can apply for reimbursement), and the Dearborn automaker will begin notifying Five Hundred and Montego owners beginning August 15. Check out the official NHTSA press release after the jump for further details.