Ford executives say they welcome Kerkorian investment

Executives said their work to return Ford to profitability by 2009 was taking hold, just over a week after Kerkorian's Tracinda Corp. said it had acquired a 4.7 percent stake in the company.

"We welcome Tracinda and thank them for their confidence in our plan," Ford Chairman Bill Ford said during the company's annual meeting in Wilmington.

Kerkorian has held significant ownership stakes in General Motors and Chrysler, where he advocated for changes. His investment company said last week it hopes to amass a 5.6 percent stake in the automaker, expressing confidence in Ford Chief Executive Alan Mulally's work.

Ford shares on Thursday rose 2.5 percent, or 20 cents, to $8.16.

Mulally acknowledged that the slowing U.S. economy will create challenges, but said Ford was making progress. Ford has worked to reduce costs in North America and adjusted production levels in response, he said.

"Our plan is working, and these priorities will remain our priorities for the foreseeable future," Mulally said.

Ford heard some complaints about the March sale of its Jaguar and Land Rover businesses to India-based Tata Motors Ltd. for $2.3 billion, a third of the original purchase price.

"I am absolutely heartbroken you sold Jag," said Dr. Hilda Meth of Richmond, Va., who said she has owned Ford cars for years.

Company officials said they wanted to focus on their core brands.