Who among the remaining four will get the nod?
Despite his stellar performance as CFO, Lewis Booth, 63, would probably prefer to retire, while marketing guru Jim Farley, 48, needs broader experience.
That leaves two candidates. Mulally is said to favor fellow engineer Joe Hinrichs. Hinrichs, 44, holds a degree from Harvard Business School, and has risen quickly up the ranks from the factory floor since joining Ford as the manager of a transmission plant in 2000. Hinrichs is currently chairman and CEO of Ford China and runs Ford's operations in Asia Pacific.
But Bill Ford has the deciding vote, and his choice, as well as that of many in the company, according to those in a position to know, is Mark Fields. Another HBS graduate, Fields, 50, runs Ford's core North American operations and is responsible for the company's biggest moneymaker: the F-150 pickup truck. During his tenure, Ford Motor has emerged as the member of the Detroit Three most able to resist the inroads of import competition. Although he spends weekends in Florida with his family, Fields logs long hours in the office during the workweek and avoids the local media spotlight.
There's another reason why the CEO's job is Fields' to lose: If passed over, he would almost surely leave the company for less grueling work closer to home. There is less chance of losing Hinrichs. He could plausibly be promoted to Fields' old job and told to wait his turn for the next opening.
So assuming Fields is first in line to be Ford's next CEO, how does the company prepare the world for this transition?
It could learn some things from General Electric's (GE) Jack Welch. Six years before he retired, Welch started a succession planning process, outlining the skills and characteristics that a CEO should have and letting it be known who the three leading candidates were to replace him. When the announcement was finally made in 2000 that he would be succeeded by Jeffrey Immelt, there was little surprise.
Ford and Mulally's job is much easier. Since there is no real horse race, they mostly need to give Fields public exposure to make him feel more comfortable and to give outsiders a chance to size him up. That will require the energetic Mulally to back off a little. But unless he intends to remain CEO for life, Mulally surely will be motivated to give his successor a helping hand and thus add to his already superlative record at Ford.