Before everyone panics, it wont have any effect on Canada!


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 per cent of Mazda, will sell about 20 per cent, the companies said in a separate statements.

The sale would net Ford 52 billion yen (US$540 million) based on today's closing price of Mazda's shares.

Ford's move follows an announcement yesterday that General Motors Corp. was selling its remaining three per cent stake in Japan's Suzuki Motor Corp. back to the Japanese vehicle maker for 22.37 billion yen (US$230 million).

Hit by a slump in the U.S., Ford is burning through its cash reserves and, along with General Motors and Chrysler LLC, is seeking a US$25-billion government lifeline.

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

Mazda said it and unnamed "strategic business partners'' would purchase the shares sold by Ford. Media reports cited Hiroshima Bank, Sumitomo Corp., Tokio Marine Holdings Inc. and Denso Corp. as possible purchasers.

Ford helped engineer a turnaround at once-struggling Mazda during the past decade, sending executives and sharing technology and parts.

Hiroshima-based Mazda, which makes the RX-8 and MX-5 Miata sports cars as well as a lineup of sedans, hatchbacks and crossovers, said the two companies will continue their strategic relationship.

 

https://www.rx8club.com/general-automotive-49/ford-sells-portion-its-stake-mazda-160849/

 

Interesting info. So glad to know that the 8 is still made in Japan. There's solid comfort in that knowledge for some reason...Seems that all the North American car manufacturers are haemorrhaging money these days. This is exactly what happens when you ignore or misread the wants and desires of the NA consumer...

 

Its hard to read a market that changes its mind like the weather! I believe the European/Japanese markets have always been fairly consistent with the cars they drive, size, diesels, etc. The North American market goes with the media flow, small fuel efficient cars a month ago, now gas is cheap, full size trucks are moving again in the USA. By the time the Big 3 can switch to smaller efficient cars, no one will want them and they will have missed again.

 

Bingo. Bottom line: Pro-activity rather than reactivity.

 

NA manufactures have yet to build a car I would buy. I have always bought Japanese cars -- love Mazda and Honda. German cars are great too but are overpriced...

It's too bad tax payers will ultimately have to pay the price for NA manufacturer incompetence... no justice in that

 

Our next car will definitely be either Mazda, Honda or maybe even a BMW (but yeah they are rather $$$$). I simply dont trust NA cars. Especially those built on Fridays LOL