F Ford Motor Company

North America chief Raj Nair regrets actions inconsistent with company code

By Austen Hufford and John D. Stoll 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (February 22, 2018).

A top Ford Motor Co. executive has been fired following misconduct allegations, the latest business leader to be shown the door amid broader scrutiny of workplace behavior in the U.S.

Raj Nair, a 53-year-old Ford veteran who most recently ran the auto company's profitable North American business, is leaving after an investigation found his behavior was inconsistent with the company's code of conduct.

The specific nature of the allegations against Mr. Nair wasn't immediately clear.

Ford spokesman Mark Truby said Mr. Nair's departure stems from an anonymous tip received in recent weeks, which the company then investigated.

In a statement Wednesday, Mr. Nair said: "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."

While the auto industry hasn't been central to the recent wave of scandal that has engulfed a range of companies and high-profile personalities and executives, Ford has had to confront sexual-harassment claims on the factory floor. Its Chicago plant has been subject to claims brought by women as early as the 1990s saying they were harassed and bullied.

Ford Chief Executive Jim Hackett, who has condemned the behavior displayed at the plant, said in a statement Wednesday that the company let Mr. Nair go "after a thorough review and careful consideration."

The ouster hits as Ford is working to soothe investor concern about slipping profits in a flat U.S. auto market.

Its North American business, responsible for the bulk of the company's black ink, could face pressure as General Motors Co. and Fiat Chrysler Automobiles NV prepare to launch full-size pickup trucks this year. Ford's rivals have long aimed to chip away at the Ford F-150's dominance in the lucrative truck market.

"This comes at a particularly bad time for Ford, which only last spring ousted Mark Fields as CEO," Autotrader.com analyst Michelle Krebs said, referring to Mr. Nair's departure. "Investors and analysts have been unhappy with the seeming lack of a clear direction."

Although Ms. Krebs characterized Mr. Nair as a "rising star," she noted Ford hasn't articulated a firm strategy for future mobility services. Auto makers are racing to develop driverless cars and expand into ride hailing or car sharing.

Mr. Nair, a car enthusiast who once headed Ford's product-development arm, is one of a handful of executives that Mr. Hackett picked to be part of a management shuffle when he became Ford's chief executive nearly a year ago.

He was a 31-year veteran of the Dearborn auto maker, having overseen several vehicle launches and the recent development of the Ford GT supercar.

Mr. Nair received a retention bonus less than a year ago, which would have paid out about $5 million if he had stayed until the end of the decade. He was one of a number of senior leaders given special incentives shortly before Mr. Hackett's arrival.

His successor has yet to be announced.

Write to Austen Hufford at austen.hufford@wsj.com and John D. Stoll at john.stoll@wsj.com

(END) Dow Jones Newswires

February 22, 2018 02:47 ET (07:47 GMT)

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