Ford’s America president Raj Nair quits, reasons under shroud

Ford Motor Co said on Wednesday that Indian American Raj Nair, its president for North America, was leaving the company immediately after an internal investigation found his behaviour was "inconsistent with the company's code of conduct".

Raj Nair

Ford did not give any details on what that behaviour entailed. A company spokesman said the review was launched in the past few weeks after Ford received a report of inappropriate behaviour.

The review determined certain behaviour by Nair was inconsistent with the company's code of conduct, the statement said.

"We made this decision after a thorough review and careful consideration," said Ford president and chief executive Jim Hackett.

"Ford is deeply committed to providing and nurturing a safe and respectful culture and we expect our leaders to fully uphold these values," he said.

In an accompanying statement Nair regretted the incident.

"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. I continue to have the utmost faith in the people of Ford Motor Company and wish them continued success in the future," Nair said.

Nair's departure comes after several high-profile business leaders and politicians have quit or been fired in the past year following accusations of sexual harassment, with the social media movement known as #MeToo pressing for more accountability in corporate cultures.

As North American chief, Nair was responsible for operations that generate about 90 percent of Ford's global profits.

The company is not investigating other executives for similar cases, a Ford spokesman said.

Nair was appointed to his current position last May when Hackett became CEO of the second-largest US automaker.

Nair previously served as Ford's chief technical officer. He joined Ford in 1987 and rose through the automaker's manufacturing and engineering ranks to become head of global product development in 2015.

Ford said his replacement will be subject to an announcement in the near future.

Having served Ford in various capacities, Nair was its vice president, Operations, Asia Pacific.

Nair joined Ford Motor Company as a body and assembly operations launch engineer and held various positions on more than 11 vehicle programmes in 13 assembly plants.

On assignment to Europe, Nair was the vehicle operations launch manager for the 1996 European Fiesta. He then became responsible for all Ford of Europe launches including the Focus, Transit and Mondeo.

Born in 1964, Nair holds a bachelors degree in mechanical engineering with an automotive speciality from Kettering University in Flint, Mich and was named the recipient of the 2012 Kettering Alumni Award for Management Achievement. Nair stands to lose about $4.8 million worth of Ford restricted shares he was granted in May 2017 that would have vested had he remained with the company until May 2020.

In August, Ford agreed to pay up to $10.125 million to settle an investigation into sex and race harassment at two plants in Chicago conducted by the US Equal Employment Opportunity Commission (EEOC).

The EEOC said female and African-American employees had been subjected to sexual and racial harassment and found the automaker retaliated against employees who complained about the harassment or discrimination.

In an open letter after The New York Times published a widely read article on the matter, Hackett wrote "there is absolutely no room for harassment at Ford Motor Company".

"We don't want you here, and we will move you out for engaging in any behaviour like this," he wrote.

Ford has been working to affect a turnaround in its operations to improve profitability as its automotive profit margins have shrunk. The company's margins have fallen behind rivals General Motors Co and Fiat Chrysler Automobiles NV.

Year to date, Ford shares are down 14 per cent, Reuters reports.

In extended trading on Wednesday, Ford shares were unchanged from their official close of $10.60.