Jaguar, part of Ford Motors, eliminated Y&R from the review for its account on Friday when it shortlisted Berlin Cameron/Red Cell, Havas's Euro RSCG, WPP's JWT in New York, MDC Partners' Kirshenbaum Bond & Partners in New York, Leagas Delaney and M&C Saatchi.
Speculation over Fudge's future comes as WPP moves to shore up its flagship North American operation with the appointment of Gord McLean as chief executive for North America.
McLean, who is currently president of global client services for Y&R parent Young & Rubicam Brands, a role he will keep, will have Y&R's six area-managing partners, in Chicago, Detroit, Irvine, New York, San Francisco and and Toronto, reporting into to him.
His move marks a reversal of strategy for Y&R as the agency has not had a CEO for North America for several years. McLean will be based down the corridor from Fudge in New York.
The loss of Jaguar follows multimillion-dollar clients Sony Electronics, Computer Associates, Kraft Foods out of the agency and reduced spending by AT&T, which is an account that is set to disappear as the the former telecoms giant is in talks to be acquired by "baby bell" SBC.
The network was already reeling from Burger King's decision to move its $300m US advertising account after less than a year.
Fudge, a former president of Kraft Foods, was lured out of early retirement in May 2003 by Sir Martin Sorrell to restore direction to what was then Young & Rubicam Inc.
However, her appointment has not appeared to have paid off in terms of restoring the reputation of the Young & Rubicam advertising brand.
Y&R New York axed 45 jobs earlier this year, representing 10% of its Madison Avenue-based workforce.
Y&R and WPP did not return calls at the time of writing.
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