No program data available
  • Media
  • Photos
  • Videos
  • Check out the latest SPEED podcasts on iTunes
  • Mobile
This could be your avatar!
Username
Password
Register
autocar_staff's avatar
Author:
Autocar staff
Login For More
Rate this article:
  • 0/5 Stars
SPEEDtv.com Store
IndyCar Vintage White Logo Tee
100% washed cotton. Features Indy wings and wheel logo printed with special distressed look. Cool vintage tees!
Our Price: $22.00 ($19.80 Member)
Visit Button
Buy Button
Ferrari Red Classic Hat
Ferrari racing shield embroidered on front and Ferrari branding on back adjuster strap with shield embossed metal closure.
Our Price: $29.00 ($26.10 Member)
Visit Button
Buy Button
Formula 1 2009 Calendar
Every month is accompanied by a superb action shot from the 2008 season, with essential information about the sport.
Our Price: $16.95 ($15.26 Member)
Visit Button
Buy Button
Footer Bg
  • Zoom More Photos Button
  • Camera Icon
Ford to Sell Mazda Stake?
Written by: Autocar staff   http://www.autocar.co.uk
10/13/2008 - 10:27 AM
Dearborn, Mich.
 
ยป More Photos

Ford is considering selling its controlling stake in Mazda after 30 years as an investor in the profitable Japanese car firm.

The Blue Oval currently owns one third of Mazda, equating to shares worth $1.36 billion. The American car giant would use the capital raised from selling its stake to bolster its struggling operations back in the U.S.

Both Mazda and Ford refused to clarify their positions today. A Ford spokesperson told Autocar: "We do not want to comment on speculation."

However an unnamed Ford U.S. insider revealed the ongoing deliberations, adding, "No decision has been reached, yet." The Dearborn source confirmed that discussions were underway but that a decision wasn’t imminent.

All this has prompted speculation over who might buy the controlling stake in Mazda. Tata Motors today released an intriguing
statement denying that it is interested in buying the shares.

Whatever the outcome, there's no doubt that Ford could use the estimated $1.36b cash injection. The American car market has slumped to its lowest level since 1991 amidst the global financial crisis.

Ford has lost $23.9b since 2005 as sales of its SUVs and pickups - which provided the bulk of North American profits in the 1990s – have slumped.

However market experts suggest that selling Mazda isn't all about the money. Many argue that Mazda has no obvious role in Ford's future strategic plans.

Ford of Europe and its small car line-up has already made Mazda redundant. And Alan Mulally, Ford's CEO, has made clear his intention to unite the Blue Oval's often disparate worldwide operations.

Will Powell/Autocar magazine.
View All Comments