Mr Nasser pays the price for under-performance
William Ford Jr, 44, the great-grandson of company founder Henry Ford and currently the chairman, took over at the head of the company in July.
Ford has recently lost significant market share and this month reported its first consecutive quarterly loss in nearly a decade.
It was not clear whether the changes would affect the timing of Ford's restructuring plan, which may include broader job cuts, which is to be unveiled in December.
Ford's restructuring
It would be the first time a Ford family member has run the company since Henry Ford II resigned as chief executive in 1979.
Mr Nasser's ousting follows reports of serious rifts with the Ford family, which still controls 40% of the board of directors' voting power through stock holdings.
The company also confirmed that the Ford management restructuring also involved British-born Nick Scheele, vice president for North America and former European vice-president, becoming chief operating officer.
Jim Padilla, group vice president for manufacturing and quality, will take over Mr Scheele's job as head of North America, and Carl Reichardt, the former chairman of Wells Fargo, becomes vice-chairman.
Nasser's decline
Ford's chairman had previously declined to comment on the reported rift with Mr Nasser and claims that he would be removed.
Ford's results showed it was hard hit by the attacks on New York and Washington with net losses totalling $692m, compared with net earnings of $888m a year earlier.
But even before 11 September, Ford's results were suffering from the impact of the Firestone tyre crisis, a number of other embarrassing product recalls and a highly competitive market.
Mr Nasser was known as "Jacques the Knife" for the way he cut jobs, especially in the UK.
The Lebanese-born and Australian-raised Mr Nasser took over as head of Ford in January 1999 after joining the company in 1968.