Watt was previously the executive creative director at Host Sydney, having joined the agency two years ago.
At Blue Hive he replaces Karin Onsager-Birch who joined FCB West in San Francisco in June last year.
Watt will report into James Evans, the president at Blue Hive Europe, and will be based at the London office.
Watt worked at GPY&R Sydney as the group executive creative director between 2010 and 2013. He has also spent six years at Net#work BBDO in South Africa.
Watt said: "This is an incredibly exciting time in our business, and I look forward to the rich opportunity of working with a global mega brand like Ford.
"Blue Hive's progressive model appeals to me at a time when integration of key skills is paramount to powerful creative work."