Ford tells shareholders turnaround gaining traction

By David Bailey

WILMINGTON, Delaware (Reuters) - Ford Motor Co's (F.N: Quote, Profile, Research) turnaround has moved quicker than expected, Executive Chairman Bill Ford Jr. told shareholders at the automaker's annual meeting on Thursday, giving unqualified praise to Chief Executive Alan Mulally's leadership.

The shareholder meeting comes after the No. 2 U.S. automaker posted a surprise $100 million first-quarter profit and billionaire investor Kirk Kerkorian disclosed he had taken a nearly 5 percent stake.

Kerkorian's Tracinda holding company got a single mention by Ford during the nearly two-hour meeting in Wilmington, Delaware, though his investment in the company and endorsement of its turnaround plan and management were center stage.

"We welcome Tracinda and thank them for their confidence in our plan," said Bill Ford.

Kerkorian, who did not attend the meeting, has in the past shaken the automotive industry with his investments. Most recently before his announced investment in Ford, he made a bid to acquire Chrysler in 2007 and held a nearly 10 percent stake in General Motors Corp (GM.N: Quote, Profile, Research) for a short stint.

Ford, who hired Mulally from Boeing Co (BA.N: Quote, Profile, Research) to take over from him as CEO in 2006, credited Mulally for engineering a faster turnaround for Ford, which has targeted a return to profitability in 2009.

"Most people can see the progress we are making," Bill Ford said. "Each quarter we keep getting stronger and stronger ... and I think it's because of Alan's management skills."

An annual, and largely symbolic, challenge to the Ford founding family's super-voting rights from a dissident shareholder garnered just 27.2 percent support at the annual meeting, slightly less than in 2007.