Major auto group Ford Motor Co.’s North American president Raj Nair will be stepping down from his position, following allegations of inappropriate behavior.
The Dearborn-based car maker said that its head of US operations is departing from Ford effective immediately.
In recent weeks, Ford has received an anonymous tip that prompted the company to conduct an internal investigation. Although the carmaker did not mention specific details of such behavior, the probe ultimately led to Nair’s exit.
Ford found out that certain behavior by Nair was inconsistent with their code of conduct.
Nair expressed regret over the instances he was unable to show leadership behaviors consistent with the principles that the company and him have always uphold. He added that he continues to have the utmost confidence in the people of Ford and wishes them continued success in the future.
Ford’s chief executive Jim Hackett said that their decision was based on a thorough review and careful consideration. They are also deeply committed to providing and developing a safe and respectful culture, and they expect their leaders to fully uphold these values.
The company will be announcing who will take the helm that Nair left in the near future.
Nair’s Journey and Exit
By training, Nair is a mechanical engineer. He has been the point man for global product development and was considered as one of the potential future-CEO candidates. He was also considered as a visionary, taking the lead role at the Detroit auto show in January.
When Hackett was promoted in May last year, Nair was among the four top Ford officials who received a one-time retention bonus. He was set to be paid in 2020.
Additionally, he was granted long-term stock incentives of nearly $5 million, according to the documents filed with the Securities and Exchange Commission.
Nair’s exit came after Ford faced a string of controversies and challenges in the previous months. The company earlier this year has already lost its new China head Jason Luo due to personal reasons.
Neither the business strategy nor the performance of Ford China was a contributing factor to Luo’s resignation.
Luo entered Ford on September 2017 to supervise operations in greater China. He was in charge of the company’s import business Lincoln, its joint venture Changan Ford, its commercial vehicle investment in Jiangling Motors Corp. Ltd., and the auto group’s operations in Taiwan.
Ford has not so far named a replacement, stating that it will be the subject of future announcement.
Shares of Ford were up by 0.4 percent to $10.65 in pre-market trade. Its stock price has flattened in the past 12 months.
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