Cost cuts blamed for Reitzle's exit.

Ford's tough cost-cutting measures led to Wolfgang Reitzle's decision to resign as head of the company's Premier Automotive Group luxury-brand unit.

His departure came after weeks of clashing with Ford Motor Chief Operating Officer Nick Scheele over program and budget cuts, according to a source close to Reitzle.

The wide-ranging cost reductions targeted everything from bonuses for overseas executives - cut regardless of performance - to elimination of business-class travel for managers even on intercontinental flights, to new-vehicle programs.

"Scheele has regularly thrown stones at [Premier] during the past few months," the source, who declined to …