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FIRST ON CNBC: CNBC TRANSCRIPT: CNBC'S PHIL LEBEAU SPEAKS WITH ALAN MULALLY, FORD MOTOR CEO, TODAY ON CNBC'S "SQUAWK ON THE STREET"

Alan Mulally
AP
Alan Mulally

WHEN: Today, Thursday, May 13th at 10:00AM ET

WHERE: CNBC's "Squawk on the Street"

Following is an unofficial transcript of a FIRST ON CNBC interview with Ford Motor CEO, Alan Mulally, today on CNBC's "Squawk on the Street" at 10am ET.

All reference must source CNBC.

LEBEAU: THANK YOU, MARK. WE ARE HERE WITH AN EXCLUSIVE FIRST ON CNBC INTERVIEW WITH ALAN MULALLY. JUST WRAPPED UP THE FORD ANNUAL MEETING THIS YEAR AND A COUPLE OF THINGS THAT CAME UP IN THE MEETINGS THAT I'D LIKE TO TOUCH ON WITH YOU. ONE OF THEM BEING THIS ISSUE OF, YOU'VE HAD FOUR PROFITABLE QUARTERS IN A ROW, HOW DO YOU BUILD ON THAT MOMENTUM, BECAUSE THIS IS AN INDUSTRY THAT'S HAD A BAD TRACK RECORD OF BOOM AND BUST?

MULALLY: NO, I UNDERSTAND AND ONE OF THE NEAT THINGS THAT WE DID TODAY WITH THE SHAREHOLDERS WAS TO REVIEW NOT ONLY WHERE WE'VE BEEN BUT ALSO WHERE WE ARE GOING WITH ALL OF OUR GREAT NEW PRODUCTS AND THE FACT THAT WE ALSO UPDATED THEM, WE ARE GOING TO BE SOLIDLY PROFITABLE FOR ALL OF THE YEAR FOR 2010 AND EVEN IMPROVE THAT FOR 2011.

LEBEAU: THE QUESTION COMES UP CAN YOU BE AS PROFITABLE AS YOU EXPECT WITH SMALL CARS? YOU'VE GOT THE FIESTA ON THE WAY, YOU'VE GOT THE NEW FOCUS, THE GLOBAL CAR AND THERE'S PLENTY OF SKEPTICISM ON WALL STREET THAT YOU CAN HAVE PROFIT PER VEHICLE THAT YOU WANT AS YOU FOCUS ON SMALLER CARS.

MULALLY: WELL WE KNOW PHIL, AS YOU HAVE COVERED, THAT WE HAVE BEEN PROFITABLE ON OUR SMALLER VEHICLES EVERYWHERE AROUND THE WORLD. THE REAL QUESTION NOW IS BRINGING THE SMALLER VEHICLES INTO THE UNITED STATES TO SATISFY THE U.S. DEMAND. THE NEAT THING IS WITH FORD SCALE WORLDWIDE WE ABSOLUTELY CAN NOT ONLY MAKE THE NEATEST SMALLER VEHICLES, BUT ALSO WE CAN MAKE MONEY ON THEM.

LEBEAU: BY THE WAY, YOU ANNOUNCED YOU BEGAN PRODUCTION THIS WEEK IN FACT, DOWN IN MEXICO ON THE FIESTA, WHICH WILL BE IN SHOWROOMS IN A FEW WEEKS.

MULALLY: ABSOLUTELY.

LEBEAU: THE DIVIDEND QUESTION CAME UP AGAIN FROM A SHAREHOLDER TODAY. ANY DISCUSSION ABOUT BRINGING THE DIVIDEND BACK?

MULALLY: WELL, OF COURSE. AND IT'S OUR GOAL OVER TIME TO BE ABLE TO DO THAT. AND CLEARLY, OUR MOST IMPORTANT PRIORITY RIGHT NOW IS WITH PROFITABILITY AND OUR POSITIVE FREE CASH FLOW NOW IS TO PAY DOWN OUR DEBT, ACCELERATE THE IMPROVEMENT ON OUR BALANCE SHEET AND THEN WE HAVE GREAT OPTIONS AS FAR AS THE DIVIDEND'S CONCERNED.

LEBEAU: LOOKING INTO YOUR CRYSTAL BALL, ARE WE LOOKING AT MAYBE THE DIVIDEND COMING BACK LATER THIS YEAR, NEXT YEAR? HOW FAR INTO THE FUTURE?

MULALLY: A LITTLE EARLY TO SAY, BUT CLEARLY, THE FACT THAT WE ARE GOING TO BE SOLIDLY PROFITABLE THIS YEAR AND EVEN BETTER NEXT YEAR ACCELERATES THE IMPROVEMENT OF THE BALANCE SHEET AND GIVES US THOSE OPTIONS.

LEBEAU: FORD CEO ALAN MULALLY. WE CAUGHT HIM LEAVING THE ANNUAL MEETING, JUST WRAPPED IT UP HERE IN WILMINGTON. GUYS, BACK TO YOU.

MULALLY: FORD, DRIVE ONE.

LEBEAU: THERE YOU GO. THERE'S HIS PITCH.

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