By Matt Phelps and

Carrie Wood

Ford Motor Company CEO Alan Mulally left his company’s global headquarters in Michigan to deliver a new Ford to Microsoft Corp. CEO Steve Ballmer on Redmond’s Microsoft campus Tuesday.

But not before making a pit stop at Ford of Kirkland. The act is just one in a recent line of positive things happening for Ford of Kirkland owner Jim Walen and the dealership. And the news comes in contradiction to most of the auto industry’s fortunes of late.

Mulally arrived at Microsoft headquarters in Redmond to personally deliver a light ice blue metallic 2010 Fusion Hybrid. There, he turned the keys over to Ballmer, son of a 30-year Ford veteran.

Ford of Kirkland owner Jim Walen said the Hybrid is the second vehicle Ballmer has purchased from his lot. Last week, Ballmer’s wife picked up their 2009 Ford Flex.

But the fuel-efficient Fusion Hybrid that Ballmer purchased for $32,015 stood for more than just a second family car – it signaled a milestone for Microsoft and Ford.

The Hybrid was the one-millionth vehicle equipped with the Microsoft-powered SYNC system. Co-developed by Ford and Microsoft, the voice-activated technology provides in-car communications and entertainment for mobile phones and digital music players.

“We have made a commitment to deliver the vehicles that people really want and value,” said Mulally in a press release. “The success of SYNC is another proof point that we are doing just that. We will continue to innovate and expand the capability of SYNC by integrating even more new technologies that fit our customer’s lifestyles.”

Walen said what is most exciting about the transaction is that it makes Ford “relevant.”

“We don’t have to make excuses for an American-made car,” said Walen, who opened his new dealership this week – Hyundai of Kirkland. “We’re as good or better in quality, safety and style as cars that cost a whole bunch more than ours.”

The visit by Mulally comes less than two weeks after Walen closed on the purchase of Eastside Hyundai May 14. The new dealership will reopen as Hyundai of Kirkland and is currently doing something unheard of in the current economy – hiring.

“This is kind of a leap of faith that the economy is going to get better,” said Walen, who closed the deal from his hospital bed after his appendix burst. “We like Hyundai and we are excited about the new franchise. I haven’t added it up but (the purchase price) was in the millions.”

The new deadlership is currently looking for new employees because the Eastside Hyundai dealership was completely closed down.

“We are just hiring to staff the store,” said Walen. “We know that we are hiring at a time when most others are going the opposite way.”

The new Hyundai of Kirkland will have a service department as well as a showroom.

Walen said that one of his biggest problems is signage for the new store. Walen wants to purchase a sign from a Hyundai store in Yakima but can’t because it is bigger than city ordinance will allow. The difference for Walen is nearly $17,000 if he were to purchase the sign new.

“We hope that the city will come through on this,” said Walen. “Kirkland needs to get its codes in line with at least Yakima.”

Walen said that the city should have no problem adjusting the ordinance for car dealerships because they make up a significant amount of the city’s revenue. A representative from the city said that the auto and gas sales tax represents 22 percent of Kirkland’s general fund.

Walen’s Ford of Kirkland dealership has been one of the bright spots for the company in Washington State. It was ranked the No. 1 store for the first time in its history despite seeing sales fall 20 percent last year.

“With Ford it comes down to leadership and it starts with Alan Mulally,” said Walen. “We are introducing a slue of new products.”