Wolfgang Reitzle, the charismatic head of Ford's luxury car division, has resigned as part of a restructuring operation.

Mr Reitzle, formerly number two at German car giant BMW, will be replaced by Mark Fields, currently head of Ford affiliate Mazda.

The management changeover is part of a wider shake-up under which the Ford's Lincoln and Mercury marques will be transferred from its luxury car division to the mainstream North American Consumer Business Group.

The luxury car operation will hold on to its prestige Aston Martin, Jaguar, Land Rover and Volvo marques.

European revival

"We are committed to our strategy for maximizing the potential of our premium brands," Ford chief executive Bill Ford said.

The departure of Mr Reitzle, credited with reviving Ford's European brands during his three-year stint at the company, came amid speculation of a rift with Ford chief operating officer Nick Scheele.

Mr Scheele has dismissed talk of a clash.

Ford set ambitious profit targets for Mr Reitzle's premium automotive group as the company's global performance continued to disappoint.

Mr Reitzle was also forced to scale down plans to spend $2bn (�1.3bn) reviving the ailing Lincoln brand.

In the red

Ford, the second-biggest US carmaker after General Motors, this week said it had lost $800m during the first three months of 2002, down from a $1bn profit one year earlier.

Its car and truck sales are down 13.1% so far this year.

Mr Reitzle, a career car industry executive, is to take over as chief of German engineering firm Linde, the world's biggest maker of fork lift trucks.

He joined BMW in 1976, and moved to Ford in 1999 after the German carmaker acquired the UK's Rover.