Ford replaces ousted president of North America operations
DETROIT — Ford Motor Co. named Kumar Galhotra the new president of Ford North America on Thursday, hours after Raj Nair abruptly exited the role amid acknowledgement of “inappropriate behavior” after 30 years with the iconic automaker.
While the shakeup shocked the investor community and stunned employees, Ford officials said Thursday the crisis created an opportunity to put a leader in charge of Ford’s most lucrative market whose experience is perfect for these times.
Galhotra is viewed as accomplished, respected and well-liked at all levels of the operation. But most importantly, industry observers said, the mechanical engineer educated at the University of Michigan intimately understands what it means to transform a company.
Galhotra, 52, as president of Lincoln since 2014, is credited with the dramatic turnaround of a once-stale brand that now has a waiting list of buyers clamoring to pay more than $72,000.
“Kumar brings wisdom and understanding about what it means to bring a brand kicked down back up,” said Dave Sullivan, manager of product analysis at AutoPacific Inc. “When you’re at Lincoln, it’s a brand that has been laughed at for years. Now people are taking a second look. This is what the Ford brand needs now. Kumar knows the formula.”
The stock market initially responded favorably Thursday morning with a small upward bump for Ford stock, which has been flat and lagged its competitors’ strong growth over the past year.
Galhotra, a 29-year veteran at the company, is known for his engineering savvy and product strategy experience. He accepted the top award at the North American International Auto Show in January when the new Lincoln Navigator was awarded North American Truck of the Year.