Ford’s Alan Mulally rumored to be in the lead for Microsoft CEO

It’s a rumor that won’t go away and it’s getting more interesting.

According to sources close to the situation, Ford CEO Alan Mulally, formerly the CEO of Boeing commercial division, has taken the lead to become the new CEO of Microsoft.

That’s what the Wall Street Journal tech’ blog AllThingsD reported Friday morning.

Reporter Kara Swisher writes, “People with knowledge of the situation said that while the 68-year-old Mulally was not seeking the job at first, he has become more amenable to the idea in recent weeks.”

CBS auto industry reporter Jeff Gilbert just spoke to Mulally’s heir apparent at Ford who says it’s business as usual at the car giant.

“The betting here is that Microsoft was probably turned down by Mulally once and now they’re kind of upping the offer,” says Gilbert. “He’s a guy who loves the challenge and his work is pretty much done at Ford. He’s in a position now where he’s doing long-term strategic planning and essentially staying around because the Ford stock would probably take a hit once he leaves.”

Gilbert says Mulally may be the leader best able to turn Microsoft around. “If you’ve ever met him, he’s man who oozes charm underneath it all. (He) is a very tough individual because Ford had one of the most vicious corporate cultures before he got there. He was able to tame that.”

It’s not only charm that makes Mulally an interesting choice for Microsoft, it’s also how his team has integrated cell phone technology into Ford cars.

A few weeks ago, Reuters reported that the Ford board had given Mulally the ability to step down earlier from his position than is called for in his contract. Some speculated at the time that it could point to a position in the Obama administration.

Report by KIRO Radio’s Owen Murphy and Linda Thomas.