FORD has formed a new luxury car group which will be headed by former BMW executive Dr Wolfgang Reitzle. He quit the German manufacturer in February in a row centred on the future of Rover.

Reitzle has now been named by Ford as chairman of Jaguar and Volvo, plus group vice-president of a newly-created premier automotive group. This group will include responsibility for Aston Martin and Lincoln, which are also owned by Ford. His appointment had been rumoured during the Geneva Motor Show earlier this month, but had been vigorously denied by all parties.

Nick Scheele, currently chairman and chief executive officer of Jaguar Cars, has been appointed senior vice-president of Ford Europe with responsibility for marketing, sales and service. Reitzle will report to Nasser and Scheele, who will be based in Germany, will report to Jim Donaldson, president of Ford Europe. Mike Beasley, manufacturing director for Jaguar, has been appointed to the new position of executive director of the brand.