Mike Donoughe -- the man responsible for heading up Chrysler's Project D -- has resigned from Chrysler. Donoughe, 49, was appointed to oversee Project D -- a secret project group that was given the charge of developing new cars to replace Chrysler's failing Sebring and Dodge Avenger -- in January.

According to The Wall Street Journal, Donoughe's resignation followed a clash with management, but Chrysler released a statement saying there was no such disagreement.

According to Automotive News, Donoughe was widely regarded as one of Chrysler's top engineers and even served as director of passenger car development for Mercedes-Benz before the DaimlerChrysler breakup.

Mark Chernoby will replace Donoughe as Chrysler's vice president and chief engineer of future mid-size products.

The news of Donoughe's resignation follows on the heels of Ford's Tuesday announced that its head of personnel, Joe Laymon, had resigned.