On September 15, 2008, Lehman Brothers—America’s fourth-largest investment bank—filed for Chapter 11 protection. It was the biggest bankruptcy in U.S. history, and it pushed the world’s economy over the edge. Already-tight credit markets froze, making it nearly impossible for customers to get car loans. Not that many were interested in making big purchases with unemployment skyrocketing and no sign of relief in sight. In May, Ford had worried that demand for cars and trucks in the United States would fall from the 16.1 million units sold in 2007 to less than 15 million in 2008. A week after Lehman collapsed, Jim Farley warned that number could fall to 13 million—a level not seen since 1992.* After returning to Alan Mulally’s regular weekly meeting cadence that summer, Ford was now back in crisis mode. The entire leadership team convened at least once a day, either in Mulally’s office or in the Thunderbird Room. Much of the attention was focused on sales, which continued to plummet.
