Ford Sued

Martin Leach, former president and CEO of Ford of Europe Inc., is suing Ford for $71 million, alleging the company wrongly announced he had resigned in August and then prevented him from working for a competitor.

Court documents contained in a federal lawsuit filed in Detroit Nov. 18 reportedly say Leach, 46, claims Ford was trying to “push him out” and then threatened to sue him and Fiat Auto SpA if he accepted the job of CEO offered by the Italian auto maker.

Realizing the company wanted to oust him, Leach claims in the suit he discussed the unsolicited Fiat offer with Ford Vice President David Thursfield, head of international operations, offering to leave if Ford would release him from a 2-year non-compete clause. A Ford news release the next day said Leach had resigned.

Leach claims he was fired and that the non-compete agreement no longer applies. Fiat announced Oct. 8 it had hired former Volkswagen Brazil chief Herbert Demel as CEO.

A Ford news release says Leach “elected to leave the company to pursue new opportunities.” However, at the time, Leach “didn't tell us where he was going,” says a Ford spokesman.

Leach's attorney, Thomas Hathaway, is quoted by the Financial Times as saying he hoped to get a preliminary injunction to stop Ford from enforcing its non-compete rule.