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Ford names Lincoln chief as North American president following Nair's departure

Ford announced yesterday that its North American president Raj Nair would no longer be working for the company due to "inappropriate behavior." As a result, the company needed fill that gaping vacancy. The new North American president and Ford Group vice president will be Kumar Galhotra, and his term in the new role will start on March 1. Galhotra will remain the group vice president and chief marketing officer for Lincoln through March, meaning he's the head of the luxury brand. He's had this position since 2014. Before that, he was vice president of engineering for all of Ford. With Galhotra's promotion, a number of internal promotions follow. Joy Falotico, current chairman, CEO and group vice president of Ford's credit division will fill Galhotra's position, and Dave McClelland, vice president of marketing for Ford Asia Pacific, will fill her role. Other shuffling at Ford includes Stewart Rawley's promotion to vice president for Ford North America and chief operating officer. He is the current vice president for strategy at Ford. Ford China's chairman and CEO John Lawler will take Rawley's old role, and Cathy O'Callaghan will take over Lawler's job at Ford China, but not until June 1. O'Callaghan is currently vice president, corporate controller and chief financial officer for global markets at Ford. Related Video:

Want a new 2022 Lincoln Navigator? You'll have to custom order it

Lincoln showed the refreshed 2022 Navigator in August of last year, but the luxury SUV only entered production on January 18 of this year. After just three months of rolling down the line at Ford's Kentucky Truck Plant, Lincoln has closed the doors on pumping out inventory units. Ford Authority noticed the Navigator page at Lincoln's consumer web site now reads, "The 2022 Lincoln Navigator is only available for custom order. Some models, trims, and features may not be available. Please contact your local Lincoln Retailer for updates and assistance." It's a small bit of sub-optimal news for shoppers who want to hit the dealer lot and shop for an SUV like choosing a pet at a shelter. It hasn't been such a bad thing for Lincoln, though. Ford has made it intentions clear about the future of dealer inventory and custom orders, emphasizing that it wants less of the former and more of the latter. With the Navigator, that part of the plan appears to be working out, FA reporting that retail orders in February were up 291% over February 2021. Threads on the Blue Oval Forums show buyers willing to wait for their orders as well, one buyer who placed an order on January 20 still holding out for a VIN and tentative production date at the time of writing. It doesn't appear the move to custom orders is the result of overwhelming demand, however. Rather, it seems that Ford just can't make enough Navigators to satisfy what demand there is. Production issues at the Kentucky Truck Plant that also builds the Ford Expedition and Super Duty pickup have crimped output for all three models. Expedition and Navigator sales in the U.S. are both down more than 56% through the first three months of this year. Navigators that do make it out the plant doors are leaving without Active Park Assist 2.0, a standard feature on the Lincoln that is constrained on a number of Ford vehicles as well thanks to you know what. Ford is at least able to do the next best thing, which is installing an Active Park Assist 2.0 Prep Kit that screws in the sensors and hardware. When chips are available, which the automaker believes could be 12 to 18 months, an owner can stop by a dealer to have that chip installed free of charge. It's a nicer solution than a Semiconductor Shortage Package for everyone involved. Order books for the 2023 Lincoln Navigator are expected to open in two months, with production slated to start in September. Maybe things will be better then. Or not.

The UAW's 'record contract' hinges on pensions, battery plants

DETROIT - After nearly four weeks of disruptive strikes and hard bargaining, the United Auto Workers and the Detroit Three automakers have edged closer to a deal that could offer record-setting wage gains for nearly 150,000 U.S. workers. General Motors, Ford Motor and Chrysler parent Stellantis have all agreed to raise base wages by between 20% and 23% over a four-year deal, according to union and company statements. Ford and Stellantis have agreed to reinstate cost-of-living adjustments, or COLA. The companies have offered to boost pay for temporary workers and give them a faster path to full-time, full-wage status. All three have proposed slashing the time it takes a new hire to get to the top UAW pay rate. The progress in contract talks follows the first-ever simultaneous strike by the UAW against Detroit's Big Three automakers. The union began the strike on Sept. 15 in hopes of forcing a better deal from each major automaker. But coming close to a deal is not the same thing as reaching a deal. Big obstacles remain on at least two major UAW demands: restoring the retirement security provided by pre-2007 defined benefit pension plans, and covering present and future joint- venture electric vehicle battery plants under the union's master contracts with the automakers. On retirement, none of the automakers has agreed to restore pre-2007 defined-benefit pension plans for workers hired after 2007. Doing so could force the automakers to again burden their balance sheets with multibillion-dollar liabilities. GM and the former Chrysler unloaded most of those liabilities in their 2009 bankruptcies. The union and automakers have explored an approach to providing more income security by offering annuities as an investment option in their company-sponsored 401(k) savings plans, people familiar with the discussions said. Stellantis referred to an annuity option as part of a more generous 401(k) proposal on Sept. 22. Annuities or similar instruments could give UAW retirees assurance of fixed, predictable payouts less dependent on stock market ups and downs, experts said. Recent changes in federal law have removed obstacles to including annuities as a feature of corporate 401(k) plans, said Olivia Mitchell, a professor at the University of Pennsylvania Wharton School and an expert on pensions and retirement. "Retirees want a way to be assured they won't run out of money," Mitchell said.