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10/11/2008, 2:02 AM

Ford News

Insiders: Ford planning to sell Mazda stake (Updated)

Update: Mazda issued a statement early Saturday seemingly confirming Friday’s rumors. “Nothing has been decided,” Mazda said in a statement received by the Associated Press. “Any important decision will be disclosed.”

Original Story: Ford is in the process of finding potential buyers for its 33.4 percent stake in Mazda, sources told Reuters late Friday. Ford — often viewed as the parent company of Mazda despite owning only a third of the company — recently sold its Aston Martin, Jaguar, and Land Rover brands in an effort to raise capital. Ford’s stake in Mazda is said to be worth around $1.36 billion — money the struggling automaker could use during this difficult time.

Earlier, Japan’s NHK reported the automaker was considering selling at least a 20 percent stake in the company, but it appears a complete sale of all 33.4 percent is on the table. The debt-laden company is in talks with several Japanese firms about the sale.

Many of Ford’s products are tightly linked with Mazda’s — the companies share platforms for a number of vehicles, and development on a number of projects has been joint. Another Ford subsidiary possibly for sale, Volvo, also shares platforms with Mazda and Ford, making de-integration of next-generation vehicles projects a challenge.

Ford shares fell to a 26-year low of $2.00 on Friday. Ford’s declining auto sales, coupled with an extremely unstable financial market, are to blame. Like GM, Ford has ruled out a bankruptcy filing, said CEO Alan Mulally.

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10/11, 2:16 AM

posted by:

1c3d0g

No, Ford, NO! Selling Volvo or Mazda is the worst thing you could do. Hell, you should INTEGRATE them even more in your vehicle line-ups.

10/11, 2:41 AM

posted by:

Jon

Ford was UNDER $2 a share for a good part of the day. They are desperate to do anything.

10/11, 2:54 AM

posted by:

A4

yeah selling mazda is a bad bad idea but im sure they know that… they have to do what they have to do to survive but mazda is a great asset.

10/11, 4:54 AM

posted by:

GM CEO

Mazda was the reason why they looked better than us! YOUR GOING DOWN FORD! YOUR ASS IS MINE

10/11, 6:17 AM

posted by:

AxeHead

They have no money, their stock is junk, not sure what else Ford can do to survive, maybe they should join up with GM and Chrysler? Look, they used to own a Japanese car manufacturere and still couldn’t produce quality products?

10/11, 7:55 AM

posted by:

olds307

mazda sucks anyway….. the current models are appealing but it’s all the same crap under the hood.

10/11, 8:51 AM

posted by:

bigp

se as an great man once said sell madza or volvo would be the wrost thing the could do … more intergation is needed … please dont do it

10/11, 9:51 AM

posted by:

El Aleman

It has taken me long to realize this, but I guess the sick Three do deserve to die.

The only thing good about them is their history, and with very few exceptions, time has proven over and over again that they only insult potential customers with their absolutely mediocre products instead of building cars that were conceived by engineers and designers rather than bean-counters and dealers.

Since there’s really no reason to believe that they will produce anything worth buying outside the niche (Corvette, Camaro,Mustang) and trucks, it really would not be a loss at all.

The only thing that would die with the sick Three is the hope that they would return to glory, but that clearly isn’t happening.

10/11, 10:05 AM

posted by:

golf4me

They should let Mazda buy THEM? At $2 a share, they are an easy target. If anything, Ford could still use MORE Mazda help, not less… It’s like cutting out your heart when you have cancer…makes no sense.

10/11, 10:15 AM

posted by:

DrFill

Ford sells Mazda
Mazda outsells Ford
GM buys Chrysler
Regains world #1 for a few weeks
We buy GM/Ford cars/stock
Resell at a loss
Japanese watch Keystone cops
Japanese laugh and inherit US market
Japan buys GM
Sells it to Dubai at big profit
DrFill

10/11, 10:19 AM

posted by:

DrFill

Guess that puts the kibosh on the Focus ever becoming any good, as a Mazda3 knock-off
F-150 falls
Camaro kills ‘Stang
Ford kills Focus, Ranger and Taurus thru mismanagement
I know 2nd graders who use their allowance to become major shareowners
Can we start the Deathclock please?
DrFill

10/11, 10:47 AM

posted by:

Need4SSpeed

Ford, and GM aren’t going to die… Chrysler may… but GM and Ford won’t… It’s called hard times people… and for one I’m glad the majority of “Americans” don’t have your opinons… Or else the U.S would go down the tubes even more than it currently is going…

We’re facing a down turn in the economic cycle, we had it good in the 90’s, that changed with the 2000’s but, like the market always does it’ll turn around, and in a few years the big three (if Chrysler is still around) will be healthy again, they just won’t be as big as they used to be.

But news of Ford getting rid of Mazda is a little disturbing… Supposedly they were supposed to be in the best shape, cash wise compared to GM and Chrysler this year, but looks like they are trying to free up some more cash it looks like.

Oh well Mazda will live on…

10/11, 11:03 AM

posted by:

jdasch1

The Ford family will step in with their billions when the s*it hits the fan. Their stock is different than what we see. The unions and their legecy costs have to go. They still have lots of overhead to cut and they started way earlier than GM/Chysler with those cuts. Cutting dealers only increases DEALER PROFITABILITY!!…not Ford’s profitability. And Dr. Fill…just go drive your Toyota and shuttttuppp!

10/11, 11:46 AM

posted by:

livelyjay

@Need4Speed -> Your comment is pretty much right on the money. Looking at the Dow Jones trend over the past 30 years, you can see a huge spike in numbers throughout the 90s and early 2000s. The downward, readjustment spiral was bound to happen sooner or later. Everyone just need to heed some patience, the market will turn around. Companies like Ford and GM will still be around when the market swings back.

Selling its shares in Mazda would be a huge mistake for Ford, and shows how shortsighted the upper management really is.

10/11, 12:09 PM

posted by:

Lariat Luxury Locomotive Liner No.3

Actually, people in finance are not betting on Ford; Ford may go under. It is best that Ford release both Volvo and Mazda to prevent collateral damage as it already doing to Mazda and Volvo. If Ford goes down thereafter people who are interested in buying a Volvo or a Mazda (less so Mazda) will hesitate with the uncertainty of what will happen next.

10/11, 12:22 PM

posted by:

kitko

The news is about 2 months old.
http://japancarblog.com/2008/08/ford-might-get-rid-of-stake-in-mazda/

My sources claimed that this was on the table at least 9 months ago as Mazda insiders insisted that Ford is actually acting against Mazda’s interests and Mazda was looking how to redeem itself from Ford. Mind, Mazda is not owned by Ford, unlke Volvo Cars (100% Ford owned) so with enought willing investors and Ford’s troubles it wouldn’t be impossible scenario - Ford would loose the controlling stake, that’s all that’s needed.

Still, even after the split, Ford will probably continue to get i4 engines (all post 2002 Duratecs i4s are rebadged Mazda MZRs, althoug some cars may use older Ford developed i4s) from Mazda as it does today, together with platforms for the EU market. Ford did it before it took over 33.9% at Mazda. Remember how they screwed up MX-6 when they turned it into the last gen. Probe?

Lariat Luxury Locomotive Liner No.3
Exactly, many people in the US see Mazda’s as just rebadged Fords and it hurts Mazda’s sales.

10/11, 12:34 PM

posted by:

Kaizen

I could see cash rich Honda swooping in and buying a stake.

10/11, 12:57 PM

posted by:

DrFill

jdash
Who said anything about ‘Yota
Subaru would buy 20% of Ford if they didn’t need to pay the plant janitor a X-Mas bonus!
DrFill

10/11, 1:15 PM

posted by:

rds130

Kaizen, I agree, Honda would be the more likely candidate. However, they’re known for being quite stubborn. A lot of people seem to share the same sentiment about Mazda/Honda. It’s interesting.

10/11, 1:29 PM

posted by:

Lariat Luxury Locomotive Liner No.3

Mazda doesn’t need Honda. The Japanese corporations will take care of one another if needed. Mazda was looked down upon by the Japanese when Ford bought a stake and will be better off as a single entity.

10/11, 2:13 PM

posted by:

j-dubb

please let Ford DIE!! somebody please pull the plug, In the 80’s they were marketing their cars like lexuses or toyota quality just check em out on youtube, without Mazda they are crap!! as with most the cars in their lineup are heavily mazda and or volvo engineerd products, ford hasnt built an original design and enginnerd car in years …original ford explorer, and we all know what happen there, without mazda and volvo they will cease to exist cause I think their throwing in the towel for at least the US market.

10/11, 3:08 PM

posted by:

cereal

hahoo…

and ford dies.

10/11, 7:57 PM

posted by:

NipponRules

You posters cheering on the possibility of Ford going down the tubes are absolutely as dumb as they come. I take it you are probably just children who don’t have a clue what you are saying and have a lot to learn. Go ask your mommies and daddies what would happen if Ford and GM go under especially in turbulent times like this. You goof balls better get real and not make so much lite of it.

10/11, 10:20 PM

posted by:

DrFill

Nippon
You are probably one of the smart marks that approves bailouts of companies that are corrupt, mismanaged, and outright destroying the US Capitalist system, right?

How much should we hand Ford to stay alive, and build mediocre cars in a global automotive renaissance?

Henry Ford is turning over in his grave. And if he were alive, he’d fire every Ford exec, and shutter the place himself, because the company is probably too far gone to fix.

If we are dumb, and you are so f’n smart, tell us who is at fault for Ford, and what to do, except let them die.

Oh, I get your point. Let’s have the government run the company, like they’ll run the banks.

Who needs capitalism, right?

The government is so well-run, and is really helping America.

Being an American business, and a capitalist system, means you run your business well, which means save money and invbest in the future when times are good, so you can operate when times are bad.

NO U.S. AUTOMAKER DID THAT! Guess who was doing that?

Blame the foreign automaker. Blame the U.S. consumer all you want. WE know who is screwing up

Do you have a solution? IF they are a charity case, say so.

Otherwise don’t wise off to me, if you don’t know what’s been going on for the last 30 years. I worked for Ford for 3 years, before I sobered up!

This has been a long time comin

DrFill

10/11, 11:55 PM

posted by:

Lariat Luxury Locomotive Liner No.3

10/12, 12:50 AM

posted by:

elviososa

Ford need cash….after Mazda, it’s Volvo’s turn.

10/12, 3:16 AM

posted by:

GM CEO

When Mazda and Volvo make superior cars than us why would they want to bail me out?? I feel so emo now that you guys think I’m a joke. Running an auto company is hard. But not as hard as counting all the supercars in my Garage.

:D

10/12, 11:54 AM

posted by:

johnnycanuck

No amount of cash is going to make any difference if Ford doesn’t stop making questionable product decisions. The Flex, the 500/Taurus fiasco, geriatric platforms (Ranger/Crown Victoria) and the list goes on and on. As Ron White so astutely points out: “you can’t fix stupid”.

10/12, 1:16 PM

posted by:

NipponRules

Drfill
Couple last comments:
I guess I owe an apology. I thought smug comments like that would come only from children.
Whether you are going to be sour on Detroit for the rest of your life is your choice. For you to go bad mouthing and ridiculing them consistently (like others on here do as well) and having glee in their woes is not IMO very respectful.
Sure they have produced some questionable quality products in the past as have every other manufacturer. Are you bad mouthing Toyota about all the recalls they have had recently? What about the POS Tundra with its weak frame? What about all the quality problems with VW? Are you trashing them and giving them a deathwatch? Do you discount JD Powers or Yahoo with there customer surveys just because Ford and GM are looking much better?
Detroit is trying to turn things around and people like you mindlessly and smugly working against them is unfair. If you think you are hurting them because of your negative attitude you may be right. On the bigger scale however you are doing a much more damage to the economy. If there is any consolation you guys hopefully will be included.
Easy to say crap like that when you are unaware or don’t give a **** (as yous’ have stated) about what happens to all the affected people. I’ll bet yous’ are some self centered dudes.
Ford in particular have obtained excellent management and what is apparently a good plan for the future. People like yourself who don’t have the ability to get over the past and look at the present and future are an unfortunate hurdle that may be difficult for them to jump.
You are enjoying mocking them just because you can’t get over the past while they attempt to make things right. If I was working for Detroit I would just luv to be able to reach thru this screen, grab your head, tear it off and sh.. in the hole. Too bad you are insulated by unanimity.
I shouldn’t be so passionate about you guys as it is not my battle or my country for that matter. As well at this stage of my game it doesn’t really concern me other than seeing people have such little regard for their impact on others.
If it was my problem I’d be coming after you for mocking me.

10/12, 2:29 PM

posted by:

tzu13

Well that’s dumb

10/12, 2:47 PM

posted by:

DrFill

You started the smug statements. All I did was state facts, and point out plausible scenarios for the future. You are in no position to talk down to me, since I ACTUALLY WORKED FOR FORD, and did more to help US carmakers than you.

You bring up Toyota and VW. Is this article about them? Who cares what they’re doing? You are the one with an agenda. Toyota and VW are making money, and at least have a plan. VW isn’t even doing well in the US and are still rolling in dough. Why can’t Ford diversify and leverage itself like that? If you want to defend poor management, that says a lot about you.

And don’t bring up recalls. Detroit invented, refedined, and perfected the art of the recall, so don’t make a fool of yourself and go down that road. Detroit knows recalls, and everyone else learns from them.

You still haven’t given all of us dopes a solution! Oh, great one, what’s is Ford’s solution! You know so much, but you are just like Detroit. All hype, no plan.

GM is actually making cars worth buying. 25 years too late, but at least they’re trying.

Chrysler and Ford are done. The Verve/Fiesta taking 3 years to reach America is a joke. A good company wouldn’t waste that much time. That’s the best idea Ford has had in 2 decades and they can’t sell it for 3 years. Pathetic!

Why don’t you go get some credibility. You have no ideas. You have no plan. And you want me to pat Detroit on the back, and say don’t worry? For what? Why should they get a pass? They are no different than the Wall Street companies and CEOs wrecking our economy from their side.

This is not about anybody else but the Weak 3. You can try to demonize everyone. If Ford and Chrysler fall, it is their fault alone. Not mine. Not consumers, Not Toyota’s.

You can’t handle the truth. You powder their bottom. Not my job anymore

DrFill

10/12, 3:52 PM

posted by:

deutschetouring1337

Once again no ones listens to me and says I’m full of it. =) Just remember Volvo under the VAG banner in the future.

10/12, 5:49 PM

posted by:

sharpie

Bad move, Mazda is actually doing rather nicely. Let’s hope it doesn’t go the way of Toyota! Maybe Renault-Nissan would be interested.

10/12, 6:21 PM

posted by:

NipponRules

Comments by you where I don’t see a heck of a lot of positive input. Must be a lot of fun for you. How do you think the people working for these companies feel about stuff like your deathwatch comments:

Ford sells Mazda
Mazda outsells Ford
GM buys Chrysler
Regains world #1 for a few weeks
We buy GM/Ford cars/stock
Resell at a loss
Japanese watch Keystone cops
Japanese laugh and inherit US market
Japan buys GM
Sells it to Dubai at big profit
DrFill
Guess that puts the kibosh on the Focus ever becoming any good, as a Mazda3 knock-off
F-150 falls
Camaro kills ‘Stang
Ford kills Focus, Ranger and Taurus thru mismanagement
I know 2nd graders who use their allowance to become major shareowners
Can we start the Deathclock please?
DrFill
dash
Who said anything about ‘Yota
Subaru would buy 20% of Ford if they didn’t need to pay the plant janitor a X-Mas bonus!
DrFill

Pretty smug to me. brilliant sicko

10/12, 10:20 PM

posted by:

ricky_b

Sadly, Mazdas are just better version of Fords, mostly from European or Japanese design bases. Maybe this is what Mazda needs to break free to pursue zoom-zoom without the burden of Ford’s other problems. My guess is that Ford had more to do with the US not getting a great Mazda6, especially the hatch and wagon.

As for the last remaining foreign name plate under Ford, either fix Volvo’s power train issues (under performing and inefficient… come one Volvo, the T6 gets 15/22 and your 3.2 get 16/24?) or give them up to some one who can fix them.

10/13, 12:01 AM

posted by:

441Zuke

they are redundent you need cash sell them kill merc and cut you fat and eliminate you excessive manufacturing capacity

10/13, 12:18 AM

posted by:

441Zuke

fords new slogan : buy my car i’ll suck your ****

10/13, 9:33 AM

posted by:

mayer_ray_nagin

Although I think this would be a boneheaded move for Ford, Ricky_B has a point in that Mazda might actually bring over the better versions of their cars if Ford has no say-so in the matter.

Still, this would be absolutely stupid on Ford’s part. They’d get maybe a month’s (or so) operating cash out of the deal, and in the process lose the only division that both breathes automotive life into their car product line and knows how to profitably build small cars.

Ford would be better off eliminating all Ford car offerings (except the ‘Stang), converting their factories to Mazda-derived products, and opening their entire dealer network to selling Mazdas.

10/14, 12:08 AM

posted by:

manarc250

Toyota or Honda should buy Mazda. Mazda has great products with subpar advertising, the hangover of being associated with Ford, and now with Ford Credit pulling out from Mazda they are left with out a Finance company. In these days of chaos a strong financial partner like Toyota or Honda could really make that brand soar. The products are top notch and they are fun to drive.

10/14, 7:30 AM

posted by:

JohnnyBlazE

Americans smell of wee.

10/17, 3:51 PM

posted by:

zoomzoomer

kitko.. the final-generation MX-6 was probably the best, most timeless design Mazda has ever produced.. how can you say Ford screwed it up dualing it with the Probe? That final Probe wasn’t bad looking either…

10/19, 9:20 AM

posted by:

noonenose

The known facts appear here: http://www.leftlanenews.com/ford-asks-supplier-denso-to-purchase-up-to-1-percent-of-mazda.html
Everything else is a rumour as of yet.

Mazda stands to increase in quality since many parts are supplied by Denso, and Ford could close some parts making facilities, since Fords biggest connection to Mazda is the parts that it builds, which Denso could start making. Maybe Ford is hoping to sell some of its manufacturing facilities to Denso to make some much needed cash. Whoever said that Ford was aiding Mazda by increasing it’s quality…you are so far off!

 
 
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