Ford exec out over ‘inappropriate behaviour’
Raj Nair, head of automaker’s North American operations, was 30-year veteran of firm
SOUTHFIELD, MICH.— Ford Motor Co.’s head of North American operations is leaving the automaker immediately following an investigation into reports of “inappropriate behaviour.”
An internal probe by the U.S. automaker found that Raj Nair, an executive vice-president, engaged in behaviour that “was inconsistent with the company’s code of conduct,” according to a statement.
While Ford didn’t elaborate on the behaviour that spurred Nair’s exit, he’s departing as sexual harassment scandals have brought down a litany of prominent men, most notably in Washington and within the enter- tainment and media industries. The #MeToo movement has yet to make a major mark on the male-dominated auto industry.
“We made this decision after a thorough review and careful consideration,” said Jim Hackett, Ford’s chief executive officer, in the statement.
“Ford is deeply committed to providing and nurturing a safe and respectful culture and we expect our leaders to fully uphold those values.”
Volume surged in extended trading, with more than five million shares changing hands to lead U.S. consumer discretionary stocks.
Brad Carroll, a Ford spokesperson, declined to comment beyond the statement.
Ford makes most of its money in North America, the region Nair has overseen since June. The more than 30-year veteran of the company was head of global product development and served as chief technical officer before a series of management changes that followed Hackett becoming CEO last year.
“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,” Nair, 53, said in the statement.
“I continue to have the utmost faith in the people of Ford Motor Company and wish them continued success.”
Ford has faced allegations of sexual misconduct on its factory floors for decades. In August, the company agreed to pay as much as $10.1million (U.S.) to settle sexual and racial harassment complaints following an investigation by the Equal Employment Opportunity Commission. The case involved the same Chicago plants where Ford faced lawsuits and a probe by the federal agency that led to a $17.5-million settlement in 1999.
Hackett, 62, wrote an open letter to employees in December after the New York Times published a story about the history of harassment at the plants. The newspaper said the story drew from interviews with more than 100 current and former employees.
“Candidly, it was gut wrenching to read the accounts of these women,” the CEO wrote. He apologized and warned that there was “absolutely no room for harassment” at Ford.
“Ford is deeply committed to providing and nurturing a safe and respectful culture.” JIM HACKETT FORD CEO
“We don’t want you here, and we will move you out for engaging in any behaviour like this.”
Hackett has struggled to revive Ford’s fortunes since the automaker ousted former CEO Mark Fields last year.
He’ll now have to fill an important void in the management ranks. The company’s North American automotive operations earned $7.5 billion of pre-tax profit in 2017.
While that was down from a year earlier, the next most lucrative market for Ford — the Asia Pacific region — brought in just $561million.