Reports on the future of Ford’s stake in Mazda are bubbling-up at a furious rate. And it appears that Mazda wants Ford gone in the interests of stability as much as Ford wants out in the interests of cash. Bloomberg reports that Ford will keep some portion of of its $1.33b holding in Mazda, but desperately needs to free-up some cash and free itself from a stock position that has dropped 50 percent this year. The problems start with finding a buyer though, and Automotive News [sub] reports that Ford has asked supplier giant Denso to buy in. Weirdly though, the Nikkei report cited by AN says Denso would only buy about one percent of Mazda, leaving about 32 percent in Ford’s hands. A larger chunk of that Ford stake could end up being controlled by a keiretsu, a network of Japanese corporations that own stakes in one another. Sumitomo Corp. and Itochu Corp could be joined by Denso and others, in a cooperative effort similar to that which bought Mitsubishi after Daimler backed out of its controlling stake in that firm. Whomever ends up buying Mazda could end up with something of a steal though. A weak stock price belies Mazda’s solid product pipeline, and with all-new 6 and 3 models replacing long-soldiering outgoing models, a turnaround could be in the offing. Too bad Ford doesn’t have the security to gut it out a bit longer.
On one hand, it’s a shame Ford is selling interest in one of the few divisions that make it money. Lincoln, Mercury or Volvo would be eminently more choppable.
That said, Mazda’s probably the only one they could get top dollar for.
Honestly, I think its good news for Mazda as I feel that Ford was holding Mazda back. However, it is a terrible idea for Ford despite the need for cash as all of their decent cars can be traced back at least partially to Mazda roots. Though, this maybe be the last chance for buyers to get Mazda engineering and reliability at Ford prices.
How are Mazda’s sales worldwide? They seem to be doing OK in the US, but it’s hard to for me to judge their global-worth to Ford.
Perhaps selling tiny little stakes to outside companies would be OK for Ford. Sure, they’d have to make multiple deals, but it may be easier to find some buyers willing to take 2% rather than 20% in this market. Ford basically still gets their money either way.
Mazda is literally the one bright spot at Ford. If all or most of Ford’s stake in Mazda is on the auction block, Ford’s days may be numbered fewer than previously thought.
Well, if you can’t sell Volvo…
Seriously though, the product overlap of Mazda and Ford circa 2010 (if Ford makes it that long) would be staggering. The C2, CD3 and other chassis are overutilized for one automaker. That is, if Ford really does bring the Euro Focus, Fiesta and others across the pond–and doesn’t make them suck–Mazda’s long term profit is in question.
Ford holding Mazda back? I don’t think so. Ford saved Mazda from extinction not once, but twice. Without platform sharing and factory sharing with Ford, Mazda would be toast. They simply aren’t big enough to compete on their own.
Platform sharing isn’t a problem when it is done right. The Mazda 6 and Ford Fusion have completely unique personalities and are likely rarely cross shopped.
Mazda is a little small to survive on their own. They get big cost savings by sharing platforms and engines with Ford. Still, a separation will hurt Ford more than Mazda. And I don’t see how a company would pay Ford a ton of money for Mazda, just to let Ford continue their partnership as if nothing happened. At best they’ll have to pony up much more for Mazda tech. But, Ford already has the next gen of platforms well under way so this won’t become a major problem for ~ 5~7 years.
I’m just glad I got my 2008 Mazda3 while the Ford employee discount still worked at the Mazda dealership!
John Horner is right, Ford has saved Mazda’s bacon in the past. And its really hard for any of us outsiders to say who really has designed what on the global C architecture and things like the MZR engine family. To be sure, Mazda has superb in house engineering for both engines and chassis. But Ford has economies of scale. It has been a very productive alliance/partnership. Hard to say how it will end…
Here’s hoping that Toyota buys all of Mazda.
Then, maybe, we could have Subarus with high quality, top-level engineering AND beauty.
I don’t really know the details, but this seems like one partnership that’s working really well. their shared platforms are generally agreed by everyone to be terrific, and yet it doesn’t feel like they just cannibalize each others’ sales as you see with GM rebadging. what happens to mazda if they lose the economies of scale of sharing platforms with ford? and who owns that engineering if they separate?
Here’s hoping that Toyota buys all of Mazda.
Then, maybe, we could have Subarus with high quality, top-level engineering AND beauty.
Why not just buy a Mazda?
I’d throw myself out my 20th-floor window (well, maybe) if Toyota even batted an eye in Mazda’s direction. Mazda would be homogenized to death. Zoom-zoom would become hum-drum.
Toyota may be the world’s premier appliance builder, uh, I mean, car company, but no thanks!!!!
Does Mazda actually make money or are we guessing because we like their cars?
I could see Toyota buying Mazda.
dgduris- beautiful Subarus are a sacrilege
A larger chunk of that Ford stake could end up being controlled by a keiretsu
Keiretsu is how Nissan got to the brink of bankruptcy before Ghosn took over. When your “friends” are your suppliers it’s very difficult to get competitive prices.
Ahhh! Davey, my friend,
Beauty is in the eye of the beholder. I love my Subarus more intensely than I loved the BMW’s, the Jags, the Maser and the Alfa 2000 (though the Alfa was close).
And, of course, Love is what Subaru is all about!
That’s a beautiful thing.
Here’s hoping that Toyota buys all of Mazda.
Then, maybe, we could have Subarus with high quality, top-level engineering AND beauty.
Or we could have unbreakable, but dead boring Miatas.
DENSO is 49% owned by Toyota. Ain’t happenin’.
But I love my Subaru and my Mazda!!!
NOOOOOO!!!
When’s Honda going to buy out another car company? They’ve certainly become profitable enough. Just imagine what Honda and Mazda could do together.
Honda buys GM
@quasimondo,
An AWD Miata. Hmmmmmmmmmmm….
Sorry. Hmmmmmm” would be for an AWD, ROTARY Miata
An AWD Miata. Hmmmmmmmmmmm….
No thanks. The whole friggin point of that car is lightness. AWD on a small car like that is a huge weight penalty.
If Ford has a $1.33b holding in Mazda, and they sell off a portion of that, is that really enough cash to stave off bankruptcy for more than a couple months? Why bother?