Microsoft CEO race: Spotlight on Satya Nadella as Ford chief pulls out

All eyes will be on Ford's new vehicles - not its CEO - at the Detroit auto show next week. CEO Alan Mulally finally put to rest rumors that he will leave Ford to run Microsoft. Mulally said Tuesday he'll stay at the Dearborn-based automaker through at least the end of this year.

"I would like to end the Microsoft speculation because I have no other plans to do anything other than serve Ford," Mulally told The Associated Press in an interview.

With that, Mulally ended months of speculation that had already clouded the debut of the new Mustang last month and threatened to overshadow next week's widely expected unveiling of a new F-150, plus the launch of 23 new vehicles this year. Mulally wouldn't say whether he had talked to Microsoft about the CEO job, but said the speculation had been a distraction for Ford.

"You don't have to worry about me leaving," Mulally said.

Mulally, who is credited with returning Ford Motor Co. to profitability and ending the toxic infighting in its ranks, will stick with his plan to stay at Ford through at least the end of 2014. Ford announced that plan in November 2012. At the same time it promoted Mark Fields - Mulally's likely successor - to chief operating officer.

Over the last few months, there have been numerous reports that Mulally was on the short list of candidates to replace Microsoft Corp. CEO Steve Ballmer. Microsoft announced in August that Ballmer plans to step down as CEO.

Daniel Ives, an analyst at FBR Capital Markets, said in an email that Mulally's decision was a negative for Microsoft because he was the front-runner for the CEO job. Microsoft wouldn't say Tuesday if Mulally's announcement came as a surprise.

"Out of respect for the process and the potential candidates, we don't comment on individual names," a Microsoft spokesman told the AP.

Ford shares rose 21 cents to $15.59 in after-hours trading. Microsoft shares fell 47 cents to $36.94.

Mulally's withdrawal from Microsoft's CEO derby shrinks the pool of candidates who have been touted as Ballmer's potential successor.

Remaining candidates include Satya Nadella, who oversees the Microsoft's lucrative business of selling computer servers and online services to other companies and government agencies, and Tony Bates, who joined Microsoft in 2011 when the company paid $8.5 billion for video calling service Skype. Microsoft's pending acquisition of Nokia's smartphone business also has spurred talk that Nokia CEO Stephen Elop will replace Ballmer.