How Ford Started a New Business Called Lincoln

DETROIT (TheStreet) -- For what could well be his last revitalization project at Ford(F) , CEO Alan Mulally has established a start-up business inside a $132 billion corporation.

That business is called Lincoln. Its goal is to introduce a new player, albeit one with an old name, in the harshly competitive, well-established luxury-car business, where the odds for success are long. The effort begins Tuesday. Last night, Lincoln unveiled the first step in its transformation, the MKZ luxury sedan.

"What you're going to see at the New York Auto Show with the MKZ is going to be one of those tremendous proof points that allows everyone to see where Lincoln is going, and then we'll follow up with other vehicles," Mulally said in an interview.

"We're doing it just right," Mulally said. "We had to restructure Ford and get Ford going again. Now we can do the same thing with Lincoln, and wait till you see the reaction."