Norbert Haug, the head of Mercedes-Benz Motorsport, will step down at the end of 2012 after 22 years in charge, it was announced on Thursday.
The 60-year-old has led the motorsports division since October 1990 and during that time Mercedes-Benz and its partners won six Formula One world championship titles and claimed 87 Formula One victories.
He was instrumental in helping the Formula One team sign Lewis Hamilton to partner Nico Rosberg for the 2013 season, but he hinted at his team's lack of recent success as the reason behind his resignation.
"Since 1991, we had tremendous achievements and wins, for which I want to thank all of my colleagues," he said in a statement.
"Unfortunately, with one victory in 2012 since founding our own Formula One works team in 2010, we couldn't fulfil our own expectations.
"However, we have taken the right steps to be successful in the future. Our team and our drivers will do everything to achieve these goals."
His contract was terminated by mutual agreement with the Mercedes-Benz management board.
"Norbert Haug was the face of the Mercedes-Benz Motorsport programme for more than 20 years," said Dr Dieter Zetsche, the head of Stuttgart-based Mercedes-Benz.
"For me, he put his stamp on a whole era and, as a highlight, he was responsible for the successful comeback to Formula One."