FORD SELLS A PORTION OF ITS STAKE IN MAZDA; TWO COMPANIES WILL CONTINUE STRATEGIC RELATIONSHIP


Ford Motor Company today announced it has entered into an agreement to sell a portion of its stake in Mazda Motor Corp. and that the two companies will continue their successful strategic relationship that spans nearly 30 years.


Ford Motor Company said it will sell a portion of its ownership stake in Mazda Motor Corp., and the two companies will continue their successful strategic relationship. The ratio of Ford’s ownership of Mazda stock has been reduced from 33.4 percent to just over 13 percent.
The action is in line with Ford’s plan to strengthen its balance sheet and ensure it has the resources to fund its product-led transformation plan focusing on the Ford brand worldwide.
Under the new agreement, Ford and Mazda will continue their ongoing joint ventures, as well as the sharing of platforms and powertrains. Ford and Mazda’s nearly 30-year relationship has been and continues to be an effective way to utilize the resources of both organizations and maximize joint synergies.
The divestiture of Ford’s shares in Mazda will be accomplished both through the sale of shares to Mazda and the sale of shares to a group of Mazda’s strategic business partners.

DEARBORN, Mich., November 18, 2008 – Ford Motor Company today announced it has entered into an agreement to sell a portion of its stake in Mazda Motor Corp. and that the two companies will continue their successful strategic relationship that spans nearly 30 years.

In line with Ford’s plan to strengthen its balance sheet and ensure it has the resources to implement its product-led transformation plan focusing on the Ford brand worldwide, the company said it is reducing its stake in Mazda from 33.4 percent to just over 13 percent.
Under the agreement, the divestiture of Ford’s shares in Mazda will be accomplished both through the sale of shares to Mazda and the sale of shares to a group of Mazda’s strategic business partners. The sales of the Mazda shares will net Ford approximately $540 million.

“This agreement allows Ford to raise capital that will help fund our product-led transformation, and at the same time, allows Ford and Mazda to continue our successful strategic relationship in the best interest of both companies,” said Ford President and CEO Alan Mulally. “Ford will continue to focus on the Ford brand worldwide and deliver the products our customers really want and value.”

Ford and Mazda will continue their ongoing joint ventures, as well as the sharing of platforms and powertrains. Ford will remain Mazda’s largest shareholder and will maintain a seat on Mazda’s Board of Directors.

“The sale of Mazda shares by our partner, Ford, will not result in any change in Mazda’s strategic direction and we will continue to accelerate our product-led brand improvement and cost innovation initiatives,” said Mazda Chairman, President and CEO Hisakazu Imaki. “We will continue our strategic relationship through our ongoing joint ventures with Ford, as well as the sharing of platforms and powertrains.”

From Ford Media...

Is this good news for the rotary?

HIROSHIMA, November 18, 2008—Mazda Motor Corporation (Mazda) has announced today that Mazda and several of its strategic business partners will acquire a part of Ford Motor Company’s (Ford) shares in Mazda through market trading.

As a result, the ratio of Ford’s ownership of Mazda stock will be reduced from 33.4 percent to just over 13 percent, with the new agreement allowing the two companies to continue their strategic relationship that spans nearly 30 years.

“The sale of Mazda shares by our partner, Ford, will not result in any change in Mazda’s strategic direction and we will continue to accelerate our product-led brand improvement and cost innovation initiatives,” says Mazda’s Chairman, President and CEO, Hisakazu Imaki. “We will continue our strategic relationship through our ongoing joint ventures with Ford, as well as the sharing of platforms and powertrains.”

“This agreement allows Ford to raise capital that will help fund our product-led transformation, and at the same time, allows Ford and Mazda to continue our successful strategic relationship in the best interest of both companies,” said Ford President and CEO Alan Mulally.

Ford’s sale of the Mazda stock will be achieved through Mazda and a group of Mazda’s strategic business partners each buying a portion of the shares.

From Mazda Media...

November 18, 2008
To Whom It May Concern:
Mazda Motor Corporation
Representative Director and President: Hisakazu Imaki
TSE Code Number: 7261
Contact: Kazuyuki Mitate
General Manager,
Corporate Communications Div.
TEL. Tokyo (03)3508-5056
Hiroshima (082)282-5253

Announcement of Decision to Conduct an Acquisition of Own Shares
(Under the provisions of Mazda's Articles of Incorporation pursuant to Article 165-2 of the Corporation Law of Japan.)

Mazda Motor Corporation announces that its Board of Directors, at its meeting held on November 18, 2008, decided the necessary matters to conduct an acquisition of its own shares under Article 156 of the Corporation Law of Japan, as applied pursuant to Article 165-3 of the said Corporation Law. The details of the share acquisition are as follows:

1. Reason for the share acquisition
Ford Motor Company who is our major shareholder plans to sell a part of our shares, we plan to purchase them in order to improve the efficiency of its capital, as well as to enable the implementation of flexible capital policies that meet the changes in business environment.

2. Detail of the acquisition
(1) Class of shares to be acquired: Mazda’s common shares
(2) Total number of shares to be acquired: 96,802,000 shares (upper limit)
The ratio to the total number of shares issued: 6.87% (excluding own shares)
(3) Total amount of shares to be acquired: ¥17.9 billion (upper limit)
(4) Method of acquisition: Acquisition on the Tokyo Stock Exchange
(5) Date of acquisition: November 19, 2008
< Reference >
Mazda Motor Corporation holdings of own shares issued as of September 30, 2008:
Numbers of shares already issued (excluding own shares): 1,408,395,543 shares
Numbers of own shares: 10,113,856 shares

From Mazda Media...

November 18, 2008
To Whom It May Concern:
Mazda Motor Corporation
Representative Director and President: Hisakazu Imaki
TSE Code Number: 7261
Contact: Kazuyuki Mitate
General Manager,
Corporate Communications Div.
TEL. Tokyo (03)3508-5056
Hiroshima (082)282-5253

Announcement of Acquisition of Own Shares through ToSTNeT-3 off-hours Trading System.

Mazda Motor Corporation announces that it has decided to conduct an acquisition of its own shares under Article 156 of the Corporation Law of Japan, as applied pursuant to Article 165-3 of the said Corporation Law. The details of the share acquisition are as follows:

1. Method of acquisition
We will instruct its agent to purchase its own shares on the Tokyo Stock Exchange in off-hours trading (through the ToSTNeT-3 trading system) at 8:45 a.m. on November 19, 2008, at today’s (Nov. 18) closing price of ¥184 per share. (Transactions shall not be conducted by any other system nor at another time.)

Bids to acquire shares will be restricted to the specified transaction period.

2. Detail of the acquisition
(1) Class of shares to be acquired: Mazda’s common shares
(2) Total number of shares to be acquired: 96,802,000 shares

Notes:

(a) The number of shares will not be changed. Please note that depending on market trends and other factors, there is a possibility that a portion of the
acquisition or entire acquisition may be cancelled.
(b) The scheduled number of shares will be acquired in response to corresponding
offers to sell.

3. Announcement of the results
The acquisition results will be announced after the completion of the time specified for trading at 8:45 a.m. on Nov. 19, 2008.
<Reference>
Content of the Board of Director’s decisions regarding the acquisition of the company’s own shares:
① Class of shares to be acquired: Mazda’s common shares
② Total number of shares to be acquired: 96,802,000 shares (upper limit)
③ Total amount of shares to be acquired: ¥17.9 billion (upper limit)
④ Date of acquisition: Nov. 19, 2008

From Mazda Media...

We heard you the first, second and third time.

S

Once again, is this good news for the rotary?

Is this good news for the rotary?

Well from how I see it FORD gets around $540m US Dollars.
Quite obviously Ford had no other choice, Next will probably be VOLVO.

The Automotive world has changed dramatically, Mazda have been one of the few profitable car makers along with Toyota and Honda.

I think we will see a slow down from Mazda with future models (their press release says differently though) as CASH is going to be harder to borrow, Japan is now in a recession, so is Germany, Next the US and the rest of the world.


I don't think we will see any new Gasoline only rotary engine for some years now if at all. I hope I am wrong!
I think this is the last RX-8 you will see as production is only 9000 a year for the Series II face lift model.

My how things have changed in a few short months...

Tell the people often enough of a crisis and gloom/doom and they will believe it and stop spending.

IMO economists have also underestimated the flow on effect of very high gas prices on the worlds economy.

Once again, is this good news for the rotary?

What do you think?

I have no idea.

Apologies for my posts, these details are coming through as I type..
Board of directors meeting has just finalised details.

Mazda have not wasted anytime, the following Executive officers and Managers have "step down from their positions".. effective November 19th.

David E. Friedman Representative Director, Senior Managing
Executive Officer and CEO In charge of Corporate Planning

Daniel T. Morris, Director and Senior Managing Executive Officer
In charge of Marketing and Overseas Sales

David F. Stickel - General Manager, Product Profit Control Div.

Anthony S. Pastor - Deputy General Manager,Customer Service Div.


New Appointments... effective November 19th

New CEO and President.
Takashi Yamanouchi

New Chairman of the Board
Hisakazu Imaki (formerly President and CEO)

Assistant to CEO and President
Philip G. Spender (appears the only Ford Director on the board)

Does this also explain why Franz von Holzhausen left?

I can't see this influencing the rotary one way or another. Ford and Mazda will continue to share technology and I doubt Ford sold the shares in a manner which would introduce another owner which would have a bigger stake in mazda then they do.

That being said, the rotary's future will depend on market forces and whether or not Mazda thinks people will buy the car. The majority of automotive market problems are with US domestic products while Japanese car companies are still turning a profit.

Only time will tell.

What I don’t understand is Ford will only have a 13.4% stake in Mazda but yet somehow maintains control? That’s how the two reports I’ve read indicate. I would think they would still continue their partnership but that Mazda could more or less do what it wants to now.

I would think they would still continue their partnership but that Mazda could more or less do what it wants to now.

You are correct. as the Forbes article (http://www.bloomberg.com/apps/news?pid=20601080&sid=aCfhpjH__de0&refer=asia) says By selling the shares, Ford cedes effective control of Mazda.

so they might still be the biggest share holder this allows Mazda to run itself - hence the leadership changes. Out go the Ford appointed people- in come some Mazda chosen people.

Ford looses its training ground for new execs. All of the good guys at Ford now came through Mazda in the last 10 years

and I doubt Ford sold the shares in a manner which would introduce another owner which would have a bigger stake in mazda then they do.

Mazda bought them back. There is no new owner.
Mazda is profitable and Ford is not, so Mazda took control of themselves.

Tell the people often enough of a crisis and gloom/doom and they will believe it and stop spending.



exactly right- i firmly believe much of the current situation is because of that bit of truth



http://www.mazda.com/investors/stockinfo/situation.html

there is the list of share holders. I assume Mazda will get the lion share of the 20 that ford sells but still have less than the 13 Ford will retain. The banks will buy the others- probably Mitsui Sumitomo getting most of that

cost innovation initiatives

YaY !

Mazda has the money to buy it back, but Im sure they both still wanna work together, so keeping that 13 percent should be good. They share parts with each other so if they end the shareholder relationship now, not a good thing.

speaking of Volvo, Ford totally fuxked it up and now they make nothing but Garbage just like rest of the Ford. *shurgs*

I wonder who wants Volvo these days.

If Rotaries get discontinued, I'll keep my 8 forever, and one day you'll see it at a Barrett-Jackson Auction!

Beautiful RX-7s pass through Barrett-Jackson here all the time.
They rarely get even as much as a private sale might bring.

Is this good news for the rotary?

These transactions shouldn't hurt any plans for the rotary and if anything it will help. Like ASH8 said, it's the direction the market goes (and current economy) and what Mazda decides that will affect the future of the rotary.

I hope the auto industry gets better sooner than later. I hope mazda follows through with the next gen Rx. I hope it stays on course to come out in 2011 or 2012.

What I don’t understand is Ford will only have a 13.4% stake in Mazda but yet somehow maintains control? That’s how the two reports I’ve read indicate. I would think they would still continue their partnership but that Mazda could more or less do what it wants to now.

Now I have yet to read reports, but, Ford is still the largest sharholder (13%), but, they are no longer the owner (controlling interest) as they previously were.

I hope the auto industry gets better sooner than later. I hope mazda follows through with the next gen Rx. I hope it stays on course to come out in 2011 or 2012.

Remember there is a new Boss at the Top now, he was the assistant to the new Charmain.

We are yet to hear what direction he will actually take.

Remember there is a new Boss at the Top now, he was the assistant to the new Charmain.

We are yet to hear what direction he will actually take.

Mazda have been saying the rotary is an important part of Mazda. I am sure there were more people in Mazda that thinks that than just Mr. Imaki alone. Maybe the new boss loves the rotary too, who knows.

Stripped of Ford's control, Mazda could be more free with what they could do with their small cars. Maybe finally export a Mazda 2 to US shores.

We will see what this takes us. I personally think that Mazda could do a lot more with their products, yet still retaining the relationship with Ford (all the platforms sharing), they still need each other. Also, the rotary will live on for sure.
________
COLORADO MARIJUANA DISPENSARY (http://colorado.dispensaries.org/)

With Japan's economy at it's current state, I'm afraid any major release of a new rotary engined car might be pushed back.

Mazda have been saying the rotary is an important part of Mazda. I am sure there were more people in Mazda that thinks that than just Mr. Imaki alone. Maybe the new boss loves the rotary too, who knows.

Stripped of Ford's control, Mazda could be more free with what they could do with their small cars. Maybe finally export a Mazda 2 to US shores.

We will see what this takes us. I personally think that Mazda could do a lot more with their products, yet still retaining the relationship with Ford (all the platforms sharing), they still need each other. Also, the rotary will live on for sure.

I agree with the above completely. I would think if anyone would try to put a stop to the rotary, it would be the bean counters at Ford. I think both sides benefit in this deal.

Mazda didn't stick with the rotary this long to just give it up now. It's their one special thing that no one else has, it's a huge part of what makes Mazda Mazda.

If anything, this is good news for rotaries. Mazda cares a whole lot more about rotary engines than Ford did. If anything I expect them to devote more resources to rotary engine development rather than less.

TOKYO - Ford Motor Co. is slashing its stake in Japan's Mazda Motor Corp. by nearly two-thirds, joining other struggling U.S. automakers in selling prized assets to stay afloat.

Ford, which owns 33.4 percent of Mazda, will sell about a 20 percent stake, the companies said in a separate statements.

The sale would net Ford some 52 billion yen ($540 million) based on the closing price of Mazda's shares Tuesday. The shares rose 6.4 percent to 184 yen amid media reports of a coming sale.

Hit by a slump in the U.S., Ford is burning through its reserves and, along with General Motors Corp. and Chrysler LLC, is seeking a $25 billion government lifeline to weather the deepening economic crisis.

General Motors said Monday it would sell its remaining 3.02 percent stake in Japan's Suzuki Motor Corp. for 22.37 billion yen ($230 million).

Ford racked up a loss of $8.7 billion in the second quarter, its worst ever result, and has used up $11 billion of its cash stockpile in the past year.

Over the last decade, Ford helped engineer a turnaround at once-struggling Mazda, sending executives and sharing technology and auto parts to cut costs.

Hiroshima-based Mazda, which makes the RX-8 sports car and Miata roadster, said the two companies will continue their strategic relationship.

The Japanese automaker said it would purchase the shares sold by Ford along with "several of its strategic business partners."

Mazda will buy up to 6.87 percent of its own shares for up to 17.9 billion yen ($185.3 million) through an off-hours trading system on Wednesday morning.

The company was mum on buyers of the rest of the shares being sold, but media reports mentioned Japanese companies including regional Hiroshima Bank, trading houses Sumitomo Corp. and Itochu Corp., insurance firms including Tokio Marine Holdings Inc. as well as auto parts maker Denso Corp., as purchasers.

With Japan's economy at it's current state, I'm afraid any major release of a new rotary engined car might be pushed back.

The rotary accounts for a very small budget in R&D, there is not much to worry I think.

Right now, every automaker is affected by this economy, some more than others, like NA automakers. Mazda has a really strong product lineup, they can make a comeback faster than everyone else. The new Mazda 3 is debuting in 2 days. While I can't say Mazda will dominate their bread and butter categories, but the new 3 and 6 will capture more % of its market for sure.
________
Butchitalian (http://camslivesexy.com/cam/butchitalian)

Mazda didn't stick with the rotary this long to just give it up now. It's their one special thing that no one else has, it's a huge part of what makes Mazda Mazda.

If anything, this is good news for rotaries. Mazda cares a whole lot more about rotary engines than Ford did. If anything I expect them to devote more resources to rotary engine development rather than less.

Tend to agree, BUT!!
We have to remember Mazda now calls the shots and I doubt their shareholders and bean counters will allow any new model (including rotary) to be born unless there is a solid business strategy to do so.

With Japan in recession (and soon the world) I can only see consolidation and conservative moves.
More than ever Mazda won't want to repeat the 1990's again.
Mazda's stocks also recently took a huge financial dive too, not that far behind Ford.

What I am more certain of is most of the Automotive worlds troubles have stemmed from massively high oil prices, somehow this commodity should not be allowed subjected to speculators.

Perhaps the new President can do something here.

High gas prices have slowed the worlds economies more than anything IMO.

WTF!! I planned on buying one in March. I wonder will I be able to still use the Ford A-plan as a discount?

TOKYO - Ford Motor Co. is slashing its stake in Japan's Mazda Motor Corp. by nearly two-thirds, joining other struggling U.S. automakers in selling prized assets to stay afloat.

Ford, which owns 33.4 percent of Mazda, will sell about a 20 percent stake, the companies said in a separate statements.

The sale would net Ford some 52 billion yen ($540 million) based on the closing price of Mazda's shares Tuesday. The shares rose 6.4 percent to 184 yen amid media reports of a coming sale.

Hit by a slump in the U.S., Ford is burning through its reserves and, along with General Motors Corp. and Chrysler LLC, is seeking a $25 billion government lifeline to weather the deepening economic crisis.

General Motors said Monday it would sell its remaining 3.02 percent stake in Japan's Suzuki Motor Corp. for 22.37 billion yen ($230 million).

Ford racked up a loss of $8.7 billion in the second quarter, its worst ever result, and has used up $11 billion of its cash stockpile in the past year.

Over the last decade, Ford helped engineer a turnaround at once-struggling Mazda, sending executives and sharing technology and auto parts to cut costs.

Hiroshima-based Mazda, which makes the RX-8 sports car and Miata roadster, said the two companies will continue their strategic relationship.

The Japanese automaker said it would purchase the shares sold by Ford along with "several of its strategic business partners."

Mazda will buy up to 6.87 percent of its own shares for up to 17.9 billion yen ($185.3 million) through an off-hours trading system on Wednesday morning.

The company was mum on buyers of the rest of the shares being sold, but media reports mentioned Japanese companies including regional Hiroshima Bank, trading houses Sumitomo Corp. and Itochu Corp., insurance firms including Tokio Marine Holdings Inc. as well as auto parts maker Denso Corp., as purchasers.


Interesting, Denso Corp is owned by Toyota Motor Corporation.

Seeing as how it was the big wigs at Ford that put a choke hold on RE development in the first place, I see this as good news.

I don't know if Mazda is hurting as bad as they were in the late 1970s, but now they could put more development to make the RE more fuel efficient and lighter, like they did with the first RX-7.

I don't really follow the economic bullshit too much, but wasn't Mazda one of Ford's most profitable lines? And there's talk of Volvo being next? :rollingla

I'm convinced Ford is definitely going under now in my opinion. 25 bil bailout or not, they're fucked by next year. The Big Three are incapable of properly managing their businesses and finances, and they'll blow through the billions in no time. They shouldn't have even made it past the turn of the century if you ask me.

Tend to agree, BUT!!

With Japan in recession (and soon the world) I can only see consolidation and conservative moves.


Dude, the whole world is already in recession.... except Canada which is hanging on barely.

In regards to the rotary, alot of folks underestimate how much of a brand recognition it is for Mazda and its resulting Zoom-Zoom factor. Many car companies are still searching for an identity that people can immediately attest to. The Rotary engine is Mazda's signature which is not only unique, but due to proprietary R&D, not easily imitated unlike Volvo's safey, Subaru's AWD, Audi's interior etc....
Thus, I do not see the rotary technology going anywhere. It may slow down, but it will stay.

I don't really follow the economic bullshit too much, but wasn't Mazda one of Ford's most profitable lines? And there's talk of Volvo being next? :rollingla

I'm convinced Ford is definitely going under now in my opinion. 25 bil bailout or not, they're fucked by next year. The Big Three are incapable of properly managing their businesses and finances, and they'll blow through the billions in no time. They shouldn't have even made it past the turn of the century if you ask me.

They aren't just going to go away. They'll go bankrupt, restructure, and go on, as will GM and Crapsyler.

Australia has had 17 straight years of growth, we are yet to see a recession, but only just.

info about who bought how much

http://www.reuters.com/article/innovationNews/idUSTRE4AI60K20081119

Does this also explain why Franz von Holzhausen left?

No, Franz has been a hired gun for a while now, he goes where the money and the action is. He simply got a better deal.

Ford looses its training ground for new execs. All of the good guys at Ford now came through Mazda in the last 10 years

heheh.. "The Mazda Mafia" :squint:

should be a website :) TheMazdaMafia.com

A good read about the Mazda Mafia.

http://www.forbes.com/2008/10/17/ford-mazda-stakesale-markets-equity-cx_tk_1017markets06.html