Mulally, CEO who saved Ford, retiring

Ford Motor CEO Alan Mulally, the man credited with turning around the once-troubled automaker, will retire from the company on July 1.

Mulally will be succeeded by his No. 2: Mark Fields, who has been widely seen as CEO-in-waiting since he was promoted to chief operating officer in November 2012.

The departure of the 68-year old Mulally, announced Thursday, is not a surprise.

When Fields, who is 53, was tapped as COO, Ford announced that Mulally would be staying as CEO until "at least 2014."

"I suppose this is not a terribly well-kept secret," said Ford Chairman Bill Ford Jr., in announcing the move. He described Mulally as a "hall of fame CEO."

Mulally, who was widely reported to be the top contender for the CEO spot at Microsoft(MSFT, Fortune 500) late last year, wouldn't rule out taking the top job at a new company, saying he hasn't decided what he is going to do next.

"That retirement thing sounds a little bit good too," he said. He will also be leaving the Ford's board with his retirement.

Related: Mulally will leave with nearly $300 million nest egg

Mulally was recruited to Ford in 2006 from Boeing (BA, Fortune 500), where he was in charge of its key commercial aircraft business. At the time, Ford was the most financially troubled of the U.S. automakers.

Mulally shed weaker brands, such as Volvo, Land Rover and Mazda. The biggest gamble he took was mortgaging many of the company's assets, from its productive factories to its iconic blue oval logo. He referred to the move Thursday as a "$23.5 billion home improvement loan." 
The borrowing was designed to give the company enough cash to revitalize the lineup of its core Ford brand. But it also allowed Ford to ride out the recession and avoid the bankruptcy and subsequent bailout that wiped out shareholders at General Motor(GM, Fortune 500)and Chrysler Group in 2009.