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Rumors of Ford selling part or all of its 33.4% share in Mazda have picked up steam this week since we first reported on them over the weekend, and analysts in Tokyo think a deal that "clears a cloud over Mazda" is imminent. Nikkei English News also reported that Ford has asked Japanese supplier Denso to purchase part of its stake in Mazda, but the Japanese news agency didn't claim any sources and Denso has declined comment in the matter. Most are guessing that potential buyers would include Mazda itself, as well as a number of companies over which the risk of investment could be spread, while Ford would likely hold on to at least some of its stake in the brand but lose its controlling share of the company. Management from Ford and Mazda are largely silent regarding any possible deal, but Mazda spokesman Ken Haruki said that "nothing has been decided," which doesn't sound like much of a denial. There is no question that Ford needs cash to get through these turbulent economic times, and its share of Mazda is currently worth $1.33 billion based on Wednesday's share price, which itself has dropped 56% in the past year. The ownership status of Mazda is likely worth more than $1.33 billion, though, and anyone taking that title from Ford will surely have to pay a premium. Even if Ford sells some or all of its stake in Mazda, the two companies would continue to share platforms, powertrains and components for a long, long time. That will help Ford continue to enjoy economies of scale while giving Mazda good hardware without the massive development costs.
posted : 10/16/2008 @6:17:35 PM
tags :
ford , ford earnings , ford mazda , fordearnings , fordmazda , mazda , mazda sale , mazdasale
The financial peril that currently faces the U.S. domestic automakers is no secret, and according to Wall Street Journal report published yesterday, Ford is mulling over the possibility of unloading at least part of its controlling stake in Mazda to raise cash. Japanese media, via the AP, said that Ford would likely keep some interests in the Japanese automaker after such a move -- no surprise when you consider how closely tied Ford and Madza are right now in terms of shared technology. The Oval's third-quarter numbers are expected to be pretty ugly, and the Journal's source said that the potential sale of its Mazda holdings is one of many moves reportedly under consideration as Dearborn looks for ways to add to its cash on hand. For its part, Mazda denies that any decision has been made (a non-denial, really -- no outlets reported that a deal had yet been completed) and Ford weighed in with a to-be-expected "no comment." As they say, to be continued...
posted : 10/15/2008 @9:17:17 PM
Ford's 33.9-percent stake in Mazda, enough to give the Blue Oval control of the Japanese automaker, could come up for grabs if Ford is not able to turn its dire financial position around in short order, according to BusinessWeek. Such a move would likely cause major headaches at both automakers, as the two jointly develop many of their products and combine research and development costs between themselves. In fact, many of Ford's best and most important cars in the U.S. are built atop Mazda's midsize sedan platform. What's more, the cash infusion of Mazda's sale would only net Ford around $2.5 billion, barely more than what the automaker received for its stake in Jaguar and Land Rover. That amount would only allow Ford to stretch a little while longer without returning to profitability. In other words, it would hardly be worth the trouble and is therefore, we're hoping, rather unlikely.
posted : 8/8/2008 @7:49:03 PM
tags :
chang'an , changan , changan ford mazda , changanfordmazda , china , ford , ford motor china , fordmotorchina , plants , production , sales
Ford's not seeing GM-level success in China yet, but its joint venture, Chang'an Ford Mazda, is among the top ten selling automakers in China. The popularity of the Focus and S-Max have bolstered sales by 60 percent since last year, and the new money will be used to facilitate more production. Chang'an Ford Mazda is a three-way split between Ford Motor China, who will throw $20.3 million into the pot, Chang'an Auto, contributing $29 million, and Mazda, which is kicking in $8.7 million. The idea is to sell more than the record 217,000 units sold last year. A new factory was recently opened and can build 160,000 small cars for Ford and Mazda, too. Full-throttle capacity for Chang'an Ford Mazda is a tick over 400,000 cars, and it looks like the Chinese market is the next gold rush for automakers with sales growing by big numbers for Ford, and expected to rise further.
posted : 2/23/2008 @3:21:57 PM
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