Ex Ford Europe Chief Sues Ford
11-19-2003, 06:28 AM
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Ex Ford Europe Chief Sues Ford
Ex Ford Europe Chief Sues
Jim Burt
Martin Leach, the former head of Ford of Europe, filed suit Tuesday against his former employer seeking up to 60 million euros in damages. Leach charges that Ford prematurely announced his resignation last August and prevented him from accepting an offer to run Fiat Auto.
Leach said in court papers he was being frozen out by senior Ford executives including Ford Europe chairman David Thursfield, and that he discussed the offer to run Fiat Auto with Thursfield and a human resources executive. Ford, says Leach, announced his resignation before he tendered it, and then enacted Leach's non-compete contract, preventing him from working for a competitor for one year.
Fiat wasn't willing to wait and hired former VW executive Herbert Demel to the top job. Ford threatened to sue Leach and Fiat if Leach took the job.
Leach had fallen out of favor, according to Ford officials, after a much higher than expected second quarter loss of $525 million in the second quarter. The loss took Wall Street and credit rating agencies by surprise and embarrassed Ford CEO Bill Ford.
Leach says Ford owes him 20 million euros to cover five years of lost wages and bonuses connected with the Fiat job, and "exemplary" damage claims triple the amount sought.
Source The Car Connection
Jim Burt
Martin Leach, the former head of Ford of Europe, filed suit Tuesday against his former employer seeking up to 60 million euros in damages. Leach charges that Ford prematurely announced his resignation last August and prevented him from accepting an offer to run Fiat Auto.
Leach said in court papers he was being frozen out by senior Ford executives including Ford Europe chairman David Thursfield, and that he discussed the offer to run Fiat Auto with Thursfield and a human resources executive. Ford, says Leach, announced his resignation before he tendered it, and then enacted Leach's non-compete contract, preventing him from working for a competitor for one year.
Fiat wasn't willing to wait and hired former VW executive Herbert Demel to the top job. Ford threatened to sue Leach and Fiat if Leach took the job.
Leach had fallen out of favor, according to Ford officials, after a much higher than expected second quarter loss of $525 million in the second quarter. The loss took Wall Street and credit rating agencies by surprise and embarrassed Ford CEO Bill Ford.
Leach says Ford owes him 20 million euros to cover five years of lost wages and bonuses connected with the Fiat job, and "exemplary" damage claims triple the amount sought.
Source The Car Connection
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