(Updates throughout with details from lawsuit, changes dateline, previous FRANKFURT)
DETROIT, Nov 19 (Reuters) - The former chief of Ford Europe has sued Ford Motor Co. , claiming he was fired in August but illegally barred by Ford from taking a job as Fiat Auto's new CEO or working anywhere else in the auto industry.
Martin Leach said in the lawsuit filed in federal court in Detroit on Tuesday that he had raised the possibility of leaving Ford to work for another automaker if a noncompete clause in his contract could be waived.
The noncompete clause stated that Leach could not work elsewhere in the auto industry for two years if he voluntarily left Ford. Leach, a 27-year veteran of Ford, said in the lawsuit he felt his job was in jeopardy after the unit posted a shock $525 million loss for the second quarter and his duties had been cut back.
Leach said in the suit that Fiat Auto offered him the job of CEO on Aug. 1, contingent on Ford waiving the noncompete clause. He said he raised his job concerns, the fact he had a job offer and modifying the noncompete clause in a meeting on Aug. 7 with David Thursfield, Ford's head of international operations, and was told by Thursfield and another executive the company would consider his request.
But Leach said Thursfield told him later that day he assumed Leach was resigning. Leach said he had no intention of resigning, but the following day Thursfield reasserted that Leach was resigning, effective immediately, according to the lawsuit.
"Mr. Thursfield also said it was 'not doable' for Mr. Leach to remain with Ford, and said to Mr. Leach 'you're now with your new employer,'" the lawsuit said.
Leach's lawsuit seeks more than $75,000 in damages and an injunction blocking Ford from enforcing the noncompete agreement.
Ford Europe announced Leach had "elected" to leave the company in August, and replaced him with Mazda executive Lewis Booth. Leach's lawsuit said Fiat Auto withdrew its offer after Ford told Fiat it would enforce the noncompete clause.
Ford Europe's efforts in recent years to cut costs, shut plants and launch new models had been held up as the model for the company's turnaround efforts in North America. But weak demand and pricing in Europe, combined with negative effects from currency fluctuations, undermined its recovery. Ford announced some $650 million in additional restructuring at Ford Europe in October.
In court filings, Leach's attorneys said he had turned down prior offers to work at Alfa Romeo and DaimlerChrysler because he felt his position at Ford was secure.
Ford Europe declined to comment, as did Ford spokesman Ken Zino in Dearborn.