Financial crisis weighs on executives' minds

By Patrick M. Fitzgibbons

NEW YORK (Reuters) - The most serious financial crisis in decades has caused business executives and government officials around the world to rein in expectations for short- and long-term growth and warn that business volatility will be around for some time.

In a series of interviews with Reuters reporters, executives -- from industries as varied as industrial manufacturing to property to auto makers -- spoke of the widening global credit crisis and their many concerns.

Most said they were keeping a close eye on the global banking sector, following the passage of the $700 billion bailout package and the continuing global credit problems.

Stock markets around the world continue to struggle due to concerns the bailout will not be enough.

This is Reuters' sixth wrap-up of comments on the crisis.

Following are excerpts and highlights from interviews with executives on Friday:

FORD MOTOR CO CHIEF EXECUTIVE ALAN MULALLY

Mulally ruled out a bankruptcy filing, saying the No. 2 U.S. automaker was focused on its turnaround and managing its cash "very, very carefully" as a market slowdown spreads to Europe and Asia.

A bankruptcy filing "makes no sense to us," Mulally said in an interview. "Clearly the most important thing for us is to continue to build our viable Ford."

Mulally's comments came as the automaker announced the retirement of CFO Don Leclair, the executive who helped steer Ford through a $23 billion borrowing program in 2006 that Mulally said gave the company a cushion in the current downturn.

GENERAL ELECTRIC CO CFO KEITH SHERIN

The credit crunch and housing slump have made it harder for GE to spin off its consumer and industrial arm to shareholders, but the U.S. conglomerate continues to pursue that option, Sherin told Reuters.

GE continues to get queries about buying just the appliance part of that business, and would sell it for the right price.

"If we got a tremendous offer for appliances, we'd have to evaluate that," he said. The company "continues to get a tremendous amount of interest" in the business.

GE said in May it wanted to sell its appliance unit -- the No. 2 player in the category in the United States behind Whirlpool Corp. In July, it changed course, saying it would wrap that business together with its lighting operation and some electrical-distribution equipment businesses, and spin off the combined business to shareholders.