Ford sells 20% of its stake in Mazda
Well, we have to say we saw this coming. Ford has officially sold off approximately 20% of its stake in Mazda. The sale reduces Ford's share from a controlling 33.4% interest to just over 13% and puts about $540 million into the Dearborn coffers, based on a sale price figured at Mazda's closing value Tuesday. The cash infusion will certainly help Ford's bottom line in these rough economic times, and the fact that the shares are being sold back to Mazda (7 percent) and to about 20 of its strategic partners means that Ford's remaining stake will still give it significant leverage in their partnership. Even with just 13%, Ford will remain Mazda's largest shareholder and will keep its seat on the Mazda Board of Directors. The two companies say that this will not effect Mazda's operations and that Ford and Mazda will continue their nearly 30-year history of cooperation. According to the official statement, which can be found in its entirety after the jump, Ford and Mazda will continue their ongoing joint ventures and will continue to share platforms and powertrains.[Source: Ford]
PRESS RELEASE
FORD SELLS A PORTION OF ITS STAKE IN MAZDA; TWO COMPANIES WILL CONTINUE STRATEGIC RELATIONSHIP
- Ford Motor Company said it will sell a portion of its ownership stake in Mazda Motor Corp., and the two companies will continue their successful strategic relationship. The ratio of Ford's ownership of Mazda stock has been reduced from 33.4 percent to just over 13 percent.
- The action is in line with Ford's plan to strengthen its balance sheet and ensure it has the resources to fund its product-led transformation plan focusing on the Ford brand worldwide.
- Under the new agreement, Ford and Mazda will continue their ongoing joint ventures, as well as the sharing of platforms and powertrains. Ford and Mazda's nearly 30-year relationship has been and continues to be an effective way to utilize the resources of both organizations and maximize joint synergies.
- The divestiture of Ford's shares in Mazda will be accomplished both through the sale of shares to Mazda and the sale of shares to a group of Mazda's strategic business partners.
In line with Ford's plan to strengthen its balance sheet and ensure it has the resources to implement its product-led transformation plan focusing on the Ford brand worldwide, the company said it is reducing its stake in Mazda from 33.4 percent to just over 13 percent.
Under the agreement, the divestiture of Ford's shares in Mazda will be accomplished both through the sale of shares to Mazda and the sale of shares to a group of Mazda's strategic business partners. The sales of the Mazda shares will net Ford approximately $540 million.
"This agreement allows Ford to raise capital that will help fund our product-led transformation, and at the same time, allows Ford and Mazda to continue our successful strategic relationship in the best interest of both companies," said Ford President and CEO Alan Mulally. "Ford will continue to focus on the Ford brand worldwide and deliver the products our customers really want and value."
Ford and Mazda will continue their ongoing joint ventures, as well as the sharing of platforms and powertrains. Ford will remain Mazda's largest shareholder and will maintain a seat on Mazda's Board of Directors.
"The sale of Mazda shares by our partner, Ford, will not result in any change in Mazda's strategic direction and we will continue to accelerate our product-led brand improvement and cost innovation initiatives," said Mazda Chairman, President and CEO Hisakazu Imaki. "We will continue our strategic relationship through our ongoing joint ventures with Ford, as well as the sharing of platforms and powertrains."
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Reader Comments (Page 1 of 3)
matt 10:34AM (11/18/2008)
affect
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Frank 10:35AM (11/18/2008)
if they continue to share despite the 20% sale its still a good thing.
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Jeffro 10:40AM (11/18/2008)
Not to be picky, but Ford isn't selling 20% of its stake in Mazda. It is selling 20% of Mazda! Going from being a 33% owner to 13% is a 61% sell-off if my math is correct. (someone please check this)
Snutz 10:46AM (11/18/2008)
Your math is correct sir, I was about to say the same thing.
Luis 1:03PM (11/18/2008)
The less aquaintance with Ford the better...Mazda has a bright future ahead...
Brn 9:32AM (11/19/2008)
Luis, I like Mazda, but I never understood this. They have less power than Ford, worse MPG than Ford, lower reliability than Ford. All using the same engines as Ford. Yet people prefer them to Ford???
Daveman427 10:39AM (11/18/2008)
"According to the official statement, which can be found in its entirety after the jump, Ford and Mazda will continue their ongoing joint ventures and will continue to share platforms and powertrains."
Before they split for good, I say they share platforms and powertrains to make a 4.6L 3V V-8 Mazda RX-8. Just think, RX-8 with Mustang grunt! Its not like the Renesis rotary is that much lighter than the V-8 either. And with the V-8, you don't have to put a quart of oil in every 1000 miles!
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Jay Evans 11:07AM (11/18/2008)
"Its not like the Renesis rotary is that much lighter than the V-8 either"
HUH????
full dressed weights
Renesis 267 lbs
Mustang GT 4.6 421 lbs
It's 154 lbs lighter!!!!!!!!!!!
happy_penguin 11:11AM (11/18/2008)
Bad idea. The rotary engine is what makes an RX and RX.
geo.stewart 11:36AM (11/18/2008)
The Renesis may make the RX8 the RX8 but that aint what it used to be.
with the oil usage, the poor mileage, and low hp and torque the Renesis is the weak point of the RX8.
the 6 sedan has 270+ hp vs 232 for the 8
the MS3 has 260 vs 232 for the 8
the 8 needs to retire like the nsx did.
the new TL has more grunt, of course grunt is accurate with that face.
fixitfixitstop 12:11PM (11/18/2008)
You don't understand what the RX is or is supposed to be....at all.
Daveman427 12:11PM (11/18/2008)
@Jay Evans: I stand corrected. I always thought because the rotarys had those two large cast iron rotors that they were compact but heavy. But yea, my assumption was bs. I'll do my research next time.
@happy penguin: Its true that the rotary makes an RX an RX, but I feel like the RX-8 platform is a good, responsive, well handling chassis held back by a goofy science project of a motor. I really don't want to hate on the rotary because it is different, free revving, and fun, but it just has so many shortcomings. Mazda can keep the RX-8 the way it is, but maybe offer a variant with the Mazdaspeed 3's turbo 4 (MX-8?).
BrianM 12:57PM (11/18/2008)
Honestly a Front engine Rear Drive sports sedan (RX8 Body) with a Nice V-6 or even a feul effecient V8 would be Kick Ass. I realize what the R-X stands for and I do not care about the Rotary Experiment, in fact I think it failed with engine life, reliability, oil consumption, and and the sucking sound comming from the gas tank. What did work from the RX though was the rear seats in essentially a Coupe design that actually work, Nice looks and a good suspension. If you get rid of the Rotary from that thing and get it up to 27mpg you have got a great car. If I had to sacrifice 150lbs to get that, hell that is a chubby girlfriend, and she does not want to go for rides around the track anyway.
happy_penguin 2:17PM (11/18/2008)
You make a good argument, Daveman. Very well thought out. I still disagree based on one thing: I believe the heart and soul of the RX series is the rotary engine. It might be great with a V8, but it wouldn't be an RX.
Bluestreak 2:43PM (11/18/2008)
Kudos to Daveman for the follow-up statement.
I for one am in love with the concept of the RX-8 but I disagree that the rotary is necessarily the defining characteristic of the marque. To my eyes, the beauty of the RX-8 is its handling. Take the benefits of the rotary engine (light weight, smooth running, high specific output) in a package that has a bit more torque and respectable gas mileage, and then you have a winner. The ridiculous fuel consumption is the only reason there is no RX-8 in my garage-- otherwise it is damn near perfect.
If I ever find an RX-8 with a blown motor for a reasonable price, I'm going to transplant a Miata mill under the hood, install a turbo, and enjoy.
Mobius_1 3:29PM (11/18/2008)
Ford should take the platform and use it as a basis for the Mustang :)
happy_penguin 3:32PM (11/18/2008)
Mustang isn't that kind of car.
-blank- 6:35AM (11/19/2008)
holy crap. seriously
The RX is an RX because of the motor/rotory and all things that encompass it.
1) is light weight.
2) small size (apparently only a few get this)
It's incredibly small and light, this allows many more opportunities in balancing out the cars weight ratios. You can move it up, down, forward or backward. You aren't limited to stuffing 100% of it in front of the firewall. For example the RX has roughly 60% of it in front of the firewall and the rest tucked up where the tranny would be if the mzr motor was stuck in there. The rotory is something to be designed around.
It can be stuffed in many suit options, but it's potential (despite how limited by power) can't be harnessed if it's just dropped into any regular or performance car.
Another point, if you dropped the lovely MZR in or a V6 as others are stating, it becomes just like every other car that already has that configuration. It loses it's driving characteristics drastically for simple lust for that power.
I too would love a faster RX8, I've wanted one since day one and intended to get one, but other things changed and I made some small consessions. Regardless, I could perhaps consider it with an MZR but still, it'd lose that hot knife in butter control that's made me grin over and over in some course work and test drives.
Alex 10:41AM (11/18/2008)
I guess they would have to remove Mazda from the list of owned companies on ford.com now.
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Kitko 11:00AM (11/18/2008)
They didn't OWN Mazda, they had the decisive majority, but they didn't excersise the ownership. Volvo, on the other hand, is 100 % Ford owned