Ford chooses new successor to ousted exec

Lincoln chief Galhotra to guide N. American unit

DETROIT — A veteran executive who has led Ford’s Lincoln luxury brand will now head American operations, replacing an executive who was ousted this week over allegations of inappropriate behavior.

Kumar Galhotra, 52, will replace Raj Nair as president of Ford North America on March 1, the company said Thursday. Ford Motor Co. said in a news release that Galhotra will lead all aspects of the North American business, the company’s primary source of revenue and profits.

Galhotra has been with Ford for 29 years in a number of senior engineering and product strategy positions. He has led the Lincoln brand since 2014 and has also led the company’s marketing efforts since last year.

While the shakeup shocked the investor community and stunned employees, Ford officials said Thursday that 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 understands what it means to transform a company.

Ford announced Wednesday that Nair was leaving the company immediately. The automaker would not discuss the behavior that led to his ouster.

Nair expressed regret in a company statement and declined comment.

As president of Lincoln, Galhotra is credited with the turnaround of a once-stale brand that now has a waiting list of buyers clamoring to pay more than $72,000 a vehicle

From the end of 2014 through December of last year, Lincoln brand sales in the U.S. grew nearly 18 percent under Galhotra. Lincoln’s global sales were up 13 percent last year to more than 188,000, an 18-year high for the brand, thanks in part to growth in China. One-third of Lincoln’s sales were in China last year.

Galhotra will report to Jim Farley, the company’s president for global markets. Farley said Galhotra is a “seasoned leader who knows how to drive a business transformation.”

Nair was forced out after the company investigated an anonymous complaint made to the company’s 24-hour hotline.

In a statement, Nair said “there have been instances where I have not exhibited leadership behaviors consistent with the principles