Ford Sacks North America President Raj Nair For Inappropriate Behavior

Posted February 23, 2018

Ford Motor ousted one of its most senior officials on Wednesday over what it called "inappropriate behaviour", adding to the turmoil at a company already struggling to lift its profits and plot a new strategic course.

The decision was made following an internal investigation and later review of Nair's behaviour thought to have been prompted by an anonymous tip off.

The new climate sparked the "me too" movement where women have come forward to reveal incidents of misbehaviour, forcing companies to rethink their policies and take reports seriously.

Ford informed that as per the inquiry conducted, it was concluded that some of Raj Nair's behavior had not been consistent with the company's code of conduct.

"I sincerely regret that there have been instances where I have not exhibited leadership behaviours consistent with the principles that the company and I have always espoused". He slowly climbed the ranks of the company, being promoted to head of global product development and chief technical officer.

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Having served Ford in various capacities, Nair was its vice president, Operations, Asia Pacific. "It's been a revolving door at the top of Ford for the past year, and with declining USA sales and pressure to show progress on its mobility strategy, the company really needs consistent, focused leadership in order to deliver the results Wall Street is demanding".

Ford President and CEO Jim Hackett praised the organization's talent, saying the automaker is "very fortunate to have an experienced and committed executive team in place". Joy Falotico, 50, is now Group Vice President of the Lincoln Motor Company and Chief Marketing Officer, succeeding Galhotra.

Just in the past week, the charity Save the Children announced it was investigating sexual misconduct allegations made against its former CEO and the CEO of apparel company Guess resigned following sexual harassment accusations. Some speculated he was on a career path to become chief executive officer of the auto giant. Rowley, who was previously Vice President of Strategy, will be responsible for driving the redesign of the North American business to improve its overall fitness.

The strong decision of Ford to ask its nearly 30-year-old employee to step down highlights that people values are the top priority of the brand. In 2014, he was named the Fortune Automotive Businessperson of the Year. Nair was a rising star at the company, she said.

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