Mr Padilla has helped turn Ford around

Ford has spent the past two years restructuring its business to close the gap on rivals such as General Motors.

Mr Padilla was one of the executives in charge of implementing the changes. He will replace the current COO, British-born Nick Scheele.

On Wednesday, the company said first-quarter profit had more than doubled.

Back slapping

Chief executive Bill Ford was clear about who deserved a large slice of the credit, adding that Mr Padilla's work over the past two years was "really first class".

"Jim Padilla is all about results," Mr Ford said in a statement.

Mr Scheele (left) and Mr Ford remain at the helm

"The company has made a swing of nearly $6bn (�3.4bn) in profitability in the past two years, and much of that can be attributed to improved quality, greater customer loyalty and reduced costs in North America."

Net profits rose to $1.95bn in the first three months of 2004, up from $896m during the same period of last year.

It was the first time since 2000 that earnings from car sales were greater than earnings from the finance division Ford Motor Credit.

Ford shares climbed on news of Mr Padilla's appointment and analysts said they hoped it would bring an end to infighting at the company.

Mr Scheele will retain his place on Ford's board of directors and will stay on as a company president.