Critics questioned the moves, noting the total return of less than $5 billion on a long-term investment of more than $15 billion, but there was a method to Mulally's madness. Ford took in more than $4 billion while relieving itself in further investments in all four marques. The new owners would foot that investment bill. In retrospect, his strategy was sound.

With its domestic competitors mired in bankruptcy in 2009, Ford moved forward, unencumbered by the lingering stigma of government bailouts. Ford's stock did a stunning about-face, market share increased dramatically, and, over the last several years, the company retired costly debt. And, Ford regained ownership of the Blue Oval itself. A remarkable turnaround, by any standard.

To sharpen its focus (there's that word again), Ford put the Mercury brand out to pasture in 2011. The company also consolidated its U.S. dealer base, in most cases placing the Lincoln brand with those Ford dealerships that survived the 2008 bloodletting when many dealers sold out or closed their doors.

Is Ford totally out of the woods? That question remains to be answered.

Mulally must still address three major issues. First, overcapacity in Europe. Second, revitalizing Lincoln, which is struggling against both its German and Japanese competitors and cross-town rival Cadillac. And third, aggressively attacking quality issues--especially those related to the MyFordTouch telematics system--that have dragged down its overall rankings from Consumer Reports and other organizations.

Enter the 2013 Fusion Hybrid. With its 47 m.p.g. EPA ratings for both city and highway, it doesn't just match the competition, it leap frogs over them. Ford's setting the bar so much higher is particularly important for Toyota, whose Camry Hybrid boasts EPA numbers of 43 city, 39 highway. This is no mean feat given that the all-new Fusion started its development four years ago, just as the auto industry was collapsing. More importantly, it illustrates that Ford is rapidly progressing toward the goal of building cars that will help it meet the increasingly stringent efficiency standards for 2025 recently announced by the Obama administration.

The new Fusion represents a multi-billion-dollar roll of the dice, with cutting-edge styling (just as the 1986 Taurus had), multiple high-efficiency drivetrains, and a plug-in version that promises to best the Chevy Volt in eMPG ratings. Yet Ford holds a significant advantage here, since these development costs are spread around the world with the virtually identical Mondeo. This is where Mulally's One Ford initiative is poised to pay big dividends for the company in both the short and long term.

Congratulations to Ford and Alan Mulally for engineering a stunning turnaround, one almost impossible to envision in the dark days of 2008 and 2009 when the entire U.S. auto industry looked about to collapse under its own weight. With trend-setting products like the 2013 Fusion Hybrid and the rest of the Fusion lineup, its prospects look bright indeed.