Filed under: Ford, Mazda, Earnings/Financials
Analysts: Ford could sell Mazda to raise capital
Ford's 33.9-percent stake in Mazda, enough to give the Blue Oval control of the Japanese automaker, could come up for grabs if Ford is not able to turn its dire financial position around in short order, according to BusinessWeek. Such a move would likely cause major headaches at both automakers, as the two jointly develop many of their products and combine research and development costs between themselves. In fact, many of Ford's best and most important cars in the U.S. are built atop Mazda's midsize sedan platform. What's more, the cash infusion of Mazda's sale would only net Ford around $2.5 billion, barely more than what the automaker received for its stake in Jaguar and Land Rover. That amount would only allow Ford to stretch a little while longer without returning to profitability. In other words, it would hardly be worth the trouble and is therefore, we're hoping, rather unlikely.
[Source: BusinessWeek]
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Reader Comments (Page 1 of 3)
2007RC46SP2 5:07PM (8/04/2008)
2.5 billion, hell they lose that much every month or so. ha
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geo.stewart 5:33PM (8/04/2008)
sell Ford and invest in Mazda
Daniel 6:28PM (8/04/2008)
I wonder if Ford ever thought of building cars that people wanted to buy?
Ricky 6:45PM (8/04/2008)
They do, they just sell them to Europeans... whoever they are...
mk 5:11PM (8/04/2008)
Stupid.
Volvo and Mazda design and build Ford's FWD chassis.
Selling either of those is going to put Ford in even more trouble than it already is, and would leave Volvo or Mazda out to dry.
Maybe Toyota would buy up the part of Mazda that Ford now owns, and combine it with the part of Subaru that they own.
Good looking, good handling cars, finally with a proper drivetrain and bulletproof engine and AWD.
Imagine the WRX STI drivetrain in a Mazdaspeed3 body.
Or a Legacy GT that looked as cool as the overseas Mazda 6, but still with a proper drivetrain.
The upcoming Toyota-Subaru coupe could get some Miata and RX8 handling DNA, and some styling from the Furai concept race car, and the Kabura concept.
But that would probably not happen. It would end up being too cool.
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Randy 5:21PM (8/04/2008)
I agree. These products are part of Ford's DNA!
Ford... DO NOT SELL VOLVO OR MAZDA! Or Aston (oops) to late!
senseamp 5:52PM (8/04/2008)
Please inform yourself before misinforming others.
There is nothing wrong with Ford's powertrains that Mazda uses. Look up CR ratings for Fusion, they are higher than Camry. That's same powertrain as Mazda3, Mazda5, Mazda6.
http://www.baileycar.com/crreliability2006.jpg
Notice how Fusion and Milan are there, but no Camry. :D
azzo45 7:38PM (8/04/2008)
The Camary's quality numbers have dropped as they have sold 400,000+ units the last few years.
Fusion numbers are half of that. Props to Ford on getting better Q numbers... but lets see how they do if the Fusion can DOUBLE their sales
mk 9:22PM (8/04/2008)
@Senseamp...
don't take it so seriously. I was just spitballing.
I don't like FWD that much, from ANY company. Boxer engines and AWD are better for performance, and capability, and Subaru's are among the most reliable and longest longevity. I prefer that to any inline or V-engine transverse layout. Hands down.
We'll see how many Fusions or Mazdas last as well as my Subaru, and none of them are as consistently fast, either. not even the heat-soak-prone Mazdaspeed 6.
relax. the chances of Mazda and Subaru melding are about the same as icecubes in hades.
Aetius 5:12PM (8/04/2008)
Here we go. A classic example of the typical short-sightedness that has always been an issue of Detroit. "Hey let's sell the only symbiosis that can actually get us back on our feet in the long term"
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Peter Rockwell 5:45PM (8/04/2008)
Remember, it's the BusinessWeek analysts that are saying it, not Ford.
Polly Prissy Pants 5:47PM (8/04/2008)
Did you _read_ the article?
Zane 5:13PM (8/04/2008)
Selling the zoom-zoom company? Don't think that's ever gonna happen since the two are so intertwined in bed with each other. Almost all of Ford's cars are based on some platform engineered by Mazda (and Volvo to some extent).
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RG 5:18PM (8/04/2008)
Wow, you talk about cutting off your nose to spite your face...
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Franz 6:56PM (8/04/2008)
LOL. It's kinda like they're thinking they have to shoot themselves in the foot, but they dunno which foot to pick.
Rank Your Mother 5:19PM (8/04/2008)
I thought Mazda did pretty well...guess not.
I just figured that I see so many Mazda 6s/3s out there...way more than I see Ford Fusions or Focus.
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Xcountryflyer 5:20PM (8/04/2008)
Mazda's platforms are used to underpin a lot of Ford's products because they seem to do a much better job than Ford engineers. Smart idea to sell them...not. However, I think Mazda is better off w/o Ford though. It seems to be a one-way relationship. Getting the Tribute--woo hoo.
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senseamp 6:00PM (8/04/2008)
Do people even think before bashing Ford anymore or is it reflexive at this point?
http://en.wikipedia.org/wiki/Ford_C1_Platform
"The C platform was designed in Cologne, Germany as the "C Technologies Program". Thirty engineers each from Mazda, Ford, and Volvo worked to combine the compact car engineering from all three automakers. This is especially beneficial as each manufacturer involved assisted in certain areas that they are well known for, Volvo with safety, Mazda with body rigidity, and Ford with handling."
Yes, Ford with Handling. Ford Europe has a strong legacy of making fine handling small cars. It's Ford's global platform, not Mazda's.
Seoultrain 7:48PM (8/04/2008)
Except the only C1's that made it to the US were Mazdas and Volvos.
Jimbo 5:23PM (8/04/2008)
While Ford is very dependent upon Mazda and Volvo, spinning them both off as a pair could be a viable independent company. That said, I don't see it happening.
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