Mazda has announced last night that it is breaking up with corporate partner Ford. Until now, Ford owned a 33.4 percent of Mazda’s stock, giving it control over the company under Japanese law. But now it’s selling off 20 percent, worth approximately $540 million, to raise desperately needed cash.
The alliance began back in 1979, when Mazda spent much of the decade developing the fuel-thirsty rotary engine, even after the 1973 oil crisis. Ford purchased a 27 percent stake then and slowly increased its share during the 80s and early 90s. Together, they shared many platforms such as the Mazda MX-6/Ford Probe, 323/Escort and 6/Fusion. The two companies have said they will continue to save costs by working together on more platforms in the future.
This news follows GM’s announcement yesterday that it would sell its remaining 3.02 percent stake in Suzuki.
[AP]
Yay!!! I wonder who’s going to buy that stock though….
Mazda is buying back just under 7% of the stock. The rest is going to “undisclosed investors” but are thought to be a series of Japanese banks and parts maker Denso.
Just goes to show how ignorant the Big three really are!
Wouldn’t you think that if your failing in a market being taken over by the Asian builders
in might be smart to invest in them more, than staying the cores and draining the
U.S. of much needed tax paying money? I’m sure in someway/ or many, I’m wrong but to me it just doesn’t sound like a good thing to do…..
Some say that GM only has enough cash to keep the doors open for another mth or two. Ford probably isn’t in the same boat but cash from this sale would go a long way for them right now.
mazda is the only thing making money for them at the moment in the australian market, i imagine it would be similar in other places around the world.
while it would give them the cash in the short term i don’t think it’s a great move long term for ford
Awesome! I’m much more interested in Mazda’s future now!
I agree that it probably would be in Ford’s interest to keep Mazda in the long run, but as often is the case with the big 3, it seems like they succumb to knee-jerk reactions and then worry about the repercussions later.
Anyhow, I hope this new “freedom” will enable some more of Mazda’s quirkiness to come out.