Wolfgang, Lincoln/Mercury gone......(m) (archive)

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DETROIT (AP) -- Ford Motor Co. said Friday that it is shaking up management of
its slumping Lincoln and Mercury luxury brands, breaking them off from its
European name plates.

The world's No. 2 automaker also announced the departure of the head of its
restructured Premier Automotive Group, now encompassing Aston Martin, Jaguar,
Land Rover and Volvo.

Wolfgang Reitzle is leaving effective May 1 as head of the group to become chief
executive of the German engineering company Linde AG. He will remain a
consultant to Ford under a contract that bars him from joining another
automaker, Ford chief executive Bill Ford said.

John Casesa, an analyst with Merrill Lynch, called Reitzle's departure a
"disappointing development given the credibility he brought to the company's
luxury effort."

Reitzle leaves behind a "team of talented managers," he said, but the PAG effort
may be "slightly handicapped."

Through March 31, Mercury's U.S. sales have dropped 29.8 percent, and Lincoln
sales are down 20.5 percent. Overall, Ford's sales fell 11.5 percent.

Lincoln and Mercury will become part of Ford's North American Consumer Business
Group, which includes cars and light trucks bearing the Ford brand.

A key reason for the change is Ford's realization that its U.S. luxury brands
compete with other domestic luxury brands far more than they do with luxury
imports.

"There are domestic buyers and import buyers, and the crossover is relatively
modest," Ford president Nick Scheele said in a conference call with reporters.

"Lincoln, let's face it, appeals to drivers who are truly desirous of an
American product," Scheele said, citing General Motors Corp.'s Cadillac as a
principal competitor.

In particular, customers for domestic luxury cars typically want more interior
space than is found in imports, he said.

There had been speculation that a rift had developed between Reitzle and
Scheele. Scheele dismissed those rumors during a conference call with analysts
on Wednesday.

Bill Ford said Reitzle agreed with the brand management shift and said Reitzle
had been looking for a chance to run his own company.

The Dearborn, Mich.-based company's stock was up 3.72 percent, or 59 cents a
share, at $16.46 in early afternoon trading Friday on the New York Stock
Exchange.

Ford on Wednesday reported a first-quarter loss of $800 million, mostly because
of an accounting rule change. Its worldwide automotive operations lost $310
million.

Reitzle will be replaced by Mark Fields, now president and chief executive of
Mazda Motor Corp. and a Ford vice president.

Until Fields becomes head of the Premier Automotive Group on July l, the
presidents of Aston Martin, Jaguar, Land Rover and Volvo will report directly to
Scheele.

Scheele said the outlook is good for the Lincoln brand, which will start selling
a redesigned Navigator next month.

Ford said his company remains committed to a goal of getting 35 percent of its
profits from its U.S. and European luxury brands by mid-decade. He would not say
what percentage it now gets from them.

--Jim O'Connor, formerly president of Ford Division, becomes group vice
president for North American Marketing Sales and Service, overseeing Ford and
Lincoln Mercury and reporting to Jim Padilla, group vice president, North
America.

--Steve Lyons, previously Ford Division general sales manager, becomes Ford vice
president and president of Ford Division.

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