Ford President of North America Raj Nair presents the 2019 Ford Ranger pickup at January’s North American International Auto Show in Detroit. Ford fired Nair Wednesday for unspecified “inappropriate conduct.”
Cleveland, Ohio – Ford Motor Co. has fired and replaced Raj Nair, a senior executive on the company’s short list to succeed current President and CEO Jim Hackett, for unspecified inappropriate behavior.
“We made this decision after a thorough review and careful consideration,” Hackett said. “Ford is deeply committed to providing and nurturing a safe and respectful culture and we expect our leaders to fully uphold these values.”
The firing followed an internal investigation into allegations of inappropriate behavior, an investigation that determined Nair’s actions were “inconsistent with the company’s code of conduct.”
Nair had been within the top five names on Ford’s organizational chart as president of the North America. When Hackett abruptly replaced Mark Fields in the top seat in mid-2017, promoting Nair was one of his first actions. Before taking over the presidency of Ford’s most profitable region, he ran the company’s global design operations, making him instrumental in virtually every Ford vehicle launched in the past decade.
“I sincerely regret that there have been instances where I have not exhibited leadership behaviors consistent with the principles that the company and I have always espoused,” Nair says. “I continue to have the utmost faith in the people of Ford Motor Co, and wish them continued success in the future.”
On Thursday, the day after Nair’s ouster, Hackett promoted several executives, touting the value of Ford’s depth in management.
- Kumar Galhotra; group vice president and president, Ford North America; he will report to Jim Farley, Ford executive vice president and president, Global Markets. A 29-year veteran of the company, he has served in a variety of senior-level engineering and product strategy positions. Since 2014, he has led Lincoln Motor Co., revitalizing the luxury brand’s model lineup.
“Kumar is an incredibly talented executive with a special feel for product and brand. He is also a seasoned leader who knows how to drive a business transformation,” Farley said.
- Stuart Rowley; vice president and chief operating officer, Ford North America; he will report to Galhorta. Rowley, who was previously vice president, Strategy, Ford Motor Co., will be responsible for driving the redesign of the North American business to improve its overall fitness.
- Joy Falotico; group vice president, Lincoln Motor Co. and chief marketing officer, succeeding Galhotra. Falotico reports to Farley and is responsible for leading the continued evolution of Lincoln. She oversees all Lincoln operations globally, including product development; marketing, sales and service; and all team members supporting the brand. Falotico will remain chairman of the Ford Motor Credit Co. board of directors. Since October 2016, Falotico has been group vice president and chairman and CEO, Ford Motor Credit. In 29 years at Ford Credit, she has served in a number of executive positions around the world, including leading Marketing and Sales, working side-by-side with Ford to support sales and dealer success, and strengthening consumer and dealer service.
“Joy has been a driving force behind not only Ford Credit’s consistently strong financial performance but also its business model innovation and transition to a digital customer platform,” Farley says. “She brings marketing experience and a deep customer focus as Ford enters a very busy new product launch period to drive growth in revenue and profitability.”
- David McClelland, vice president of Ford Motor Co. and CEO, Ford Credit; a 25-year veteran of Ford Credit, McClelland succeeds Falotico. He has served in a variety of leadership positions, including most recently as executive vice president, Marketing and Asia Pacific.
- John Lawler, vice president, Strategy, succeeding Rowley
- Cathy O’Callaghan, vice president and corporate controller, and CFO, Global Markets, succeeding Lawler
About the author: Robert Schoenberger is the editor of Today’s Motor Vehicles and a contributor to Today’s Medical Developments and Aerospace Manufacturing and Design. He has written about the automotive industry for more than 17 years at The Plain Dealer in Cleveland, Ohio; The Courier-Journal in Louisville, Kentucky; and The Clarion-Ledger in Jackson, Mississippi.