FORD OF EUROPE Chief resigns after carmaker's loss

The company's European division lost $525 million in the second quarter.
BERLIN (AP) -- Ford Motor Co. announced that the president and chief operating officer of its European arm has resigned after a big loss in Europe dragged down the U.S.-based carmaker's earnings.
Martin Leach, 46, "has elected to leave the company to pursue new opportunities," Ford said in a statement. Company spokesman Don Hume declined to elaborate on the reasons for Leach's decision to step down.
Ford of Europe's chairman and chief executive, David Thursfield, is to oversee operations until a successor is appointed.
Ford of Europe's pretax loss ballooned to $525 million in the second quarter, dragging overall quarterly profit at the world's No. 2 automaker down 27 percent to $417 million.
The loss in Europe -- attributed to lower prices, an unfavorable vehicle mix and falling sales volume -- compared with a deficit of just $18 million in the second quarter of 2002.
"The Ford of Europe team remains committed to improving our financial results and to delivering outstanding products," Thursfield said in the statement.
He said the firm is making "additional cost reductions to offset current market conditions." Hume said those reductions were part of a company-wide drive announced last month to cut costs by $2.5 billion this year, up from its initial target of $500 million.
What occurred
Leach, a Ford veteran of almost 24 years, drew up a plan to revitalize Ford's product range that has seen 35 new models introduced in Europe since 2000. He became president and chief operating officer of Ford of Europe in August 2002. But the division faces fierce competition in a shrinking car market.
"Martin contributed to our growth in Europe under challenging conditions," Thursfield said. "As we move forward, we will build upon that foundation."
In the first six months of 2003, Ford has seen market share in western Europe slide to 11.3 percent from 11.6 percent as car sales in the region slumped 4.4 percent.
Ford is losing out predominantly to Japanese and Korean competitors, but is also underperforming its chief rival General Motors Corp., which has managed a slight increase in western European market share.